PROBLEM Dog Company makes 8,000 units per year of a part 5C for use in one of its products. Data concerning the unit production costs of the part follow: Direct Materials $40 Direct Labour $15 $7.5 Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Manufacturing Cost per Unit $30 $92.50 An outside supplier has offered to sell Dog Company all of the part 5Cs that it requires for $80 per unit. If Dog Company decided to discontinue making the part 5Cs, 30% of the above fixed manufacturing overhead costs could be avoided. Required: Assume that Dog Company could use the facilities presently devoted to production of the part 5Cs to expand production of another product that would yield an additional contribution margin of $50,000 annually. Should Dog Company continue to make part 5C or purchase from the outside supplier