xyz manufacturing currently makes two products A and B, with the following cost data from the recent year ended. Both are produced on the same machine which has 4,200 hours of capacity in a given year.

	A		B
Direct Materials	$30,000		$75,000
Direct Labor	$50,000		$25,000
Variable Mfg OH	$30,000		$10,000
Fixed Mfg OH	$50,000		$50,000
Sales Commissions	$10,000		$5,000
Fixed Advertising Expense	$25,000		$25,000
Allocated SG&A Costs	$20,000		$10,000
Units Produced	1,000		500
Machine Hours per Unit	2.5		2

Assume an outside supplier offers to supply Product B at a cost of $190 per unit. Fixed manufacturing overhead is a committed cost. Should the Company outsource its production of Product B? Show why.