Linda Manufacturing must decide whether to insource or outsource a new toxic$-$free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to insource the product, the process would incur $$270,000$ of annual fixed costs and $$1\mathrm{.}20$ per unit of variable costs. If it is outsourced, a supplier has offered to make it for an annual fixed cost of $$110,000$ and a variable cost of $$2\mathrm{.}00$ per unit in variable costs.

Linda Manufacturing was able to find a new supplier that would provide the item for $$1\mathrm{.}45$ per unit with an annual fixed cost of $$320,000.$ Should Linda Manufacturing insource or outsource the item? Given the expected demand is $390,000$ units.