A machine part is manufactured for a unit cost of $\mathrm{.}75$ cents for material and $$1\mathrm{.}25$ for direct labor. An

investment of $$650,000$ in tooling is required. The order calls for $2\mathrm{.}5$ million pieces. Half way through the

order mangers learn of a new method of manufacture which if applied would cut the unit cost $\mathrm{.}59$ cents and

$\mathrm{.}75$ cents in labor, but it would require an additional $$100,000$ in tooling. Other costs are allocated at $2\mathrm{.}5$

times the direct labor cost.

Should they invest in the new tooling and how much would they save?