Answer:
we will be more likely to outsource S54 to the outside contractor
Explanation:
Calculating the outsource contractor
Make Buy
Direct material 75600
Direct labour 68400
Variable overhead 57600
Supervisor's salary 84000
Allocated general overhead 17000
Purchase cost 452400
Total 302600 452400
The annual financial gain for the company as a result of buying the part from the outsource contractor would be (149800)
we will be more likely to outsource S54 to the outside contractor