Example Overhead Lighting is deciding whether to outsource production of its light bulbs. Currently the production costs are: DM $1,500, Direct Labor: $3,000, and Variable OH$3,500. If outsourced, fixed costs of $20,000 would decrease by $10,000. The light bulbs would be purchased at a total price of $21,000 What is the financial advantage (or disadvantage) of buying the light bulbs from an outside supplier? Should it make or buy the light bulbs? Suppose, if outsourced, the idle capacity would allow the company to produce another product that is expected to earn $5,000 in additional income. What is the financial advantage (or disadvantage) of buying the light bulbs from an outside supplier? Should it make or buy the light bulbs