Bayer produces 9,000 medical devices annually. The cost components per device are as follows:

Cost Type	Cost per Device
Direct materials	€80
Direct labor	€70
Variable manufacturing overhead	€40
Fixed manufacturing overhead	€30
Total	€220

Siemens Healthineers offers to supply 9,000 medical devices at €200 each. If Bayer accepts the offer, it will save €90,000 in fixed overhead.

1. Perform a differential analysis to determine if Bayer should make or buy the medical devices.
2. Calculate the total cost impact if the offer is accepted.