$1$

$"$Th my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining. N$.$V$.,$ of Aruba. $"$At a price of $66$ florins per drum, we would be paying $10$ fiorins less than it costs us to manufacture the drums in our own plant. Since we use $120,000$ drums a year, we would save $1,200,000$ florins on an annual basis: $($The currency in Aruba is the florin, denoted by Afl.$)$ Antilles Refining's present cost to manufacture one drum follows $($based on $120,000$ drums per year$)$:

$\backslash$table$[[$Direct material,Af $125\mathrm{.}70],[$Direct labour,$17\mathrm{.}00],[$Variable overhead,$8\mathrm{.}00],[$Fixed overhead $($Af$110\mathrm{.}60$ general company overhead, Af$18\mathrm{.}20,{25\mathrm{.}30}_{?}$