Garcia Company produces a part that is used in the manufacture of one of its products.The annual costs associated with the production of 5,000 units of this part are as follows: 
Of the fixed factory overhead costs,$72,000 are avoidable.Another company has offered to sell 5,000 units of the same part to Garcia for $105.60 per unit.The facilities currently used to make the part can be rented out to another manufacturer for $72,000 per year.What should Garcia Company do?
Definitions:
Leading Indicator
A measurable economic factor that changes before the economy starts to follow a particular pattern or trend, used to anticipate changes.
HRM Evaluation
The process of examining and assessing the effectiveness of Human Resource Management practices and policies in achieving organizational goals.
Predicts Future
The act of forecasting or estimating future trends, behaviors, or events based on current or past data.
Labour Expenses
The total costs incurred by an organization in compensating its employees, including salaries, benefits, and other related expenses.
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