Lucky€™s Long Board Park manufactures its own long boards to use at their national long board skiing park. An outside supplier has offered to sell long boards to Lucky€™s for $100 per unit. To evaluate this offer, Lucky€™s has gathered the following information relating to its own cost of producing a long board internally:

Should the outside supplier€™s offer be accepted? Show allcomputations.

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Per Unit (U); (U)S70; (U)S22 (U) S5; (U)S10 Total for 1,000 Units (T) (T S70,000 (T)S22,000 (T)S5,000 (T)S10,000 (T)S80,000 (T)S20,000 (U)S135; TS135,000 Direct materials Direct labor Variable manufacturing overhead upervisors salaries Depreciation of machinery to make long boards. (USS Fixed manufacturing overhead, common, allocated: (U)S20; Total cost