I just need proper work shown for this question. The correct answer is down below.

1. Outsource because operating income will increase by $6,500

Schiefer Inc. manufactures a part used in the manufacture of its products. Currently, Schiefer manufactures 30,000 units of the part annually. The annual costs of producing 30,000 parts include: Direct Materials $4/unit Direct Labor $5/unit Variable MOH $3.50/unit Fixed MOH $45,000 Management is considering whether to continue manufacturing the part, or to buy the part from an outside supplier at a cost of $12.95 per part. The fixed manufacturing overhead would not be eliminated, however, the space freed up by purchasing the part from an outside supplier could be used to manufacture another product that would increase income by $20,000. What should Schiefer do and why