Lindon Company uses 4500 units of Part X each year as a component in the assembl

Lindon Company uses 4500 units of Part X each year as a component in the assembly of one of its products. The company is presently producing Part X internally at a total cost of $69000 as follows:Direct materials$16000Direct labor18000Variable manufacturing overhead10000Fixed manufacturing overhead25000Total costs$69000 An outside supplier has offered to provide Part X at a price of $11 per unit. If Lindon stops producing the part internally one third of the manufacturing overhead would be eliminated.Required: Prepare a make-or-buy analysis showing the annual advantage or disadvantage of accepting the outside suppliers offer.