Angler Industries constructs fishing boats and manufactures rudders that are used in the construction of their boats. Unit costs, based on production of 5,000 rudders per year, are:

Manufacturing cost

	Unit costs
Direct Material	$10.00
Direct Labor	$15.00
Variable Overhead	$6.00
Fixed overhead	$13.00
Total	$44.00

An outside supplier has offered to provide the 5,000 rudders at a cost of $34 per rudder. Angler can eliminate $20,000 in fixed costs if it accepts this offer.

A. Should Angler accept the offer, assuming there is no alternative use for the facility?

B. If yes, what would be the cost savings? If no, what would be the costs in excess of the current cost to manufacture?