Violin, Inc, manufactures a part, alise, that is used in making its final product, kaheenis. The company needs 15,000 units of this part each year and has the following manufacturing costs per unit of alise: direct materials, $12; direct labor, $15; variable manufacturing overhead, $8; and fixed manufacturing overhead, $10(based upon a normal capacity of 15,000 units ofalise). The company has been approached by an outside supplier who will sell alise to the company at a cost of S38 per unit płus $2 per unit shipping. If Violin buys the part from the outside supplier, they will save $45,000 per year in fixed costs. In addition, if the company buys the part from outside, they can manufacture a product that can be sold outside the company at a total contribution margin of $50,000. 

REQUIRED: Should Violin, Inc. continue to make the part, alise, or buy the part from an outside supplier? Explain, with appropriate supporting computations.