2. The Chicago Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 25,000 units of Part No. 498 is as follows: (Click to see the manufacturing cost per unit.) For Chicago to achieve an overall savings of $20,000, the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of Part No. 575 would be which of the following: (a) $75,000, (b) $270,000, (c) $120,000 or (d) $325,000? Show your calculations. What other factors might Chicago consider before outsourcing to Bench? Begin by selecting the labels to calculate the relevant costs that would have to be saved and then enter in the supporting calculations. Cost to purchase Total relevant costs of making: (per unit) Data Table - X Costs saved by not making * units in the offer Total costs saved Extra costs of purchasing outside Minimum savings required Necessary relevant costs to be saved Choose from any list or enter any number in the input fields and then 2 parts remaining Direct materials $ 5 Variable direct manufacturing labor 29 Variable manufacturing overhead 10 20 Fixed manufacturing overhead allocated $ 64 Total manufacturing cost per unit The Bench Company has offered to sell 25,000 units of Part No. 498 to Chicago for $61 per unit. Chicago will make the decision to buy the part from Bench if there is an overall savings of at least $20,000 for Chicago. If Chicago accepts Bench's offer, $7 per unit of the fixed overhead allocated would be eliminated. Furthermore, Chicago has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575