Lillian Corporation currently makes a key input into its main product. Bernard, a manager within Lillian, is arguing that the organization should outsource production of this input and buy it from a third$-$party supplier.

Currently, the per$-$unit manufacturing costs are $$12$ in materials, $$18$ in labor, $$8$ in variable manufacturing overhead, and $$12$ in fixed costs per unit. The fixed costs are allocated from the total of fixed costs generated by the entire factory.

Bernard$$s third$-$party supplier would charge Lillian $$54$ per unit, and could sell to Lillian the entire $1,000$ units Lillian needs each year.

Also, if Bernard$$s plan is implemented, it can use the capacity currently being used to produce an input to generate additional profit of $$14,000.$

Assuming Lillian is adopting a financial perspective, which of the following

Lillian should not follow Bernard$$s plan, because doing so will decrease profits by $$2,000.$

Lillian should not follow Bernard$$s plan, because doing so will decrease profits by $$4,000.$

Lillian should follow Bernard$$s plan, because doing so will increase profits by $$10,000.$

Lillian should not follow Bernard$$s plan, because doing so will decrease profits by $$16,000.$