Which alternative is preferable and by what margin? Omega Company produces a part that has the following

Which alternative is preferable and by what margin?

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Omega Company produces a part that has the following costs per unit: Direct labor Direct material Variable overhead Fixed overhead Total P8 3 1 5 P17 Alpha Corporation can provide the part to Omega for P19 per unit. Omega Company has determined that 60 percent of its fixed overhead would continue if it purchased the part. However, if Omega no longer produces the part, it can rent that portion of the plant facilities for P60,000 per year. Omega Company currently produces 10,000 parts per year. Omega Company produces a part that has the following costs per unit: Direct labor Direct material Variable overhead Fixed overhead Total P8 3 1 5 P17 Alpha Corporation can provide the part to Omega for P19 per unit. Omega Company has determined that 60 percent of its fixed overhead would continue if it purchased the part. However, if Omega no longer produces the part, it can rent that portion of the plant facilities for P60,000 per year. Omega Company currently produces 10,000 parts per year.