Waterway Engine Incorporated produces engines for the watercraft industry. An outside manufacturer has offered to supply several component parts used in the engine assemblies, which are currently being produced by Waterway. The supplier will charge Waterway $290 per engine for the set of parts. Waterways current costs for those part sets are direct materials, $150; direct labor, $75; and manufacturing overhead applied at 100% of direct labor. Variable manufacturing overhead is considered to be 20% of the t