Kennedy Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows: Direct materials $20 Direct labor 15 Variable factory overhead 16 Fixed factory overhead 10 Total costs $61 The fixed factory overhead costs are unavoidable. Assume that Kennedy Company can buy 10,000 units of the part from another producer for $60 each. The facilities currently used to make the part could be rented out to another manufacturer for $100,000 a year. Kennedy Company should: