every year, mother company purchases 8000 units of a part that it needs to produce its prodcut. The supplier notified Mother Company that a price increase will take effect shortly, which will bring the price of the part to $25.00 each. Mother company has an idle facility and considers using it to produce the part. If they produce the part the cost of the needed 8,000 units will be
direct material $17,500
direct labor $30,000
indirect production costs-variable $14,000
indirect production costs-Fixed $33,500
The idle facility could also be rented out at an annual rent of $99,000. All the fixed indirect production costs are avoidable.

LIST THE ALTERNATIVES THE COMPANY HAS?
WHICH OF THE ALTERNATIVES IS THE BEST AND WHY?