Delta produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows:

Direct materials $ 90,000

Direct labor 130,000

Variable factory overhead 60,000

Fixed factory overhead 140,000

Total costs $420,000

Of the fixed factory overhead costs, $60,000 is avoidable.

20) Conners has offered to sell 10,000 units of the same part to Delta for $36 per unit. Assuming there is no other use for the facilities, what is the effect on operating income if Delta buys from Conners?

21) Assuming no other use of their facilities, at what buying price per unit for Delta would Deltas operating income be the same whether they made the part or bought it from Conners?