Make or Buy Problem (10 Marks) EN Electronics manufacturing a variety of computer appliances. An outside supplier offered to sell a Headset called Genius to FN Electronics for $28 per unit To evaluate this offer, FN has gathered the following information relating to its own cost of producing the Headsets internally: Details 16,000 unit per year Direct materials 160,000 Direct labor 128,000 Variable manufacturing overhead 96,000 Fixed manufacturing overhead -traceable 80,000 1 common 224,000 Fixed manufacturing overhead but allocated to headset line Total Cost 688,000 Required: Assuming that traceable overhead includes 40% headset line maintenance (avoidable) and 70% advertising for headsets only unavoidable), should the outside supplier's offer be accepted? Note: you can do analysis based on total or differential approaches