Craydye Corporation manufactures a part for its production cycle. The costs per unit for 8,000 units of this part are as follows: Direct materials $ 24 Direct labor 42 Variable overhead 15 Fixed overhead 25 Total $106 Zinkyl Company has offered to sell Craydye Corporation 8,000 units of the part for $120 per unit. If Craydye Corporation accepts Zinkyl Company's offer, total fixed overhead will be reduced by $40,000. What alternative is more desirable and by what amount is it more desirable

You receive a memo from the vice president of procurement responding to your query. he writes: “it will be very important to maintain product continuity. we have a large base of devoted customers. we want to make sure that the quality and key characteristics of island knight stay the same through this transition. talk to frank, our consulting professional perfumer, for more information about the cologne. seasonal variations in costs are the single most significant factor in our deciding to go with another supplier, so finding a way to limit that should be the top priority. the overall marginal costs and shipping costs are probably somewhat less significant. you may want to talk to cindy, the product manager for island knight, regarding pricing information about the product.” what is the best action to take next?