Apple specializes in producing Personal Computers. One of Apple's popular products is sold under the brand name Hardware X (HX). DX is one major component used in the HX's production. Apple's 2022 books contain the following per DH costs:

Direct materials $25

Direct labor 35

Variable overhead 20

Fixed overhead 28

Total $108

Android has specialty in the manufacture of Hardware X and has approached you as Apple's senior management accountant with an offer to sell to Apple 7000 DX units at a per unit price of $78. If you agree to this special price-based offer, the deal will help Apple eliminate a total of $150,000 of the HX's fixed manufacturing overhead costs.

Required: calculate the following?

1. Apple's total Relevant costs in respect of the special offer by Android?

2. As Apple's senior management accountant, what would be your decision in respect of the special offer by Android buy DX or continue manufacturing the part in its own factory? How much is the difference in the amount of cost to Apple between the two alternatives?