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Bernard Company manufactures $15,000$ units of part A$8$ each year for use on its production line. The cost per unit of A$8$ is as follows:

Direct materials $$2\mathrm{.}40$

Direct manufacturing labor $4\mathrm{.}50$

Variable manufacturing overhead $1\mathrm{.}60$

Fixed manufacturing overhead $6\mathrm{.}00$

Total cost per part $$14\mathrm{.}50$

An outside supplier has offered to sell $15,000$ units of part A$8$ each year to Bernard Company for $$15\mathrm{.}00$ per part. If Bernard Company accepts this offer, the facilities now being used to manufacture part A$8$ could be rented to another company at an annual rental of $$80,000.$ However, Bernard Company has determined that $$3\mathrm{.}50$ of fixed manufacturing overhead allocated to part A$8$ would continue even if part A$8$ were purchased from an outside supplier. Bernard$$s direct manufacturing labor consists of temporary help. Thus, Bernard can hire and dismiss those workers at will.

Required:

$1.$ What is the total fixed manufacturing overhead if Bernard Company manufactures $15,000$ units of part A$8?$ How much of the total fixed manufacturing overhead is avoidable if Bernard decides to buy the A$8?$ How much of the total fixed manufacturing overhead is unavoidable if Bernard decides to buy the A$8?$

$2.$ Should Bernard Company accept the outside company$$s offer? Why or why not? Show supporting computations.

$3.$ List two qualitative factors that Bernard should consider when determining whether to accept the offer.

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