Elena Martinez is a managerial accountant at Paibec Corporation. Paibec is under intense cost competition, and Martinez was asked to evaluate whether Paibec should continue to manufacture part MT-RF or purchase it from Marley Company in 2022. Marley had submitted a bid to supply the 40,000 MT-RF units that Paibec needs for 2022 at a price of $18.00 each. From 2021 plant records and interviews with Janice Liu, the plant manager, Martinez gathered the following information regarding Paibec's costs to manufacture 35,000 units of MT-RF in 2021: Direct materials $210,000 105,000 Direct labor Plant space rental [fixed] 88,000 34,000 Equipment lease [fixed] Other averhead Variable 106,400 Fixed 159,600 Total $703,000 Liu also told her that: if MT-RF was not purchased from Marley, direct material and direct labor costs per unit were more likely to be higher in 2022 by 10% and 5%, respectively, if MT-RF was purchased from Marley, $10,000 of the fixed overhead costs could be saved. if MT-RF was purchased from Marley, plant space will not have to be rented, and equipment will not have to be leased, but it will cost $9,500 and $5,000, respectively, to terminate the two contracts. Martinez estimated that 40,000 units of MT-RF would be needed in 2022. REQUIRED (ROUND ALL VARIABLE COSTS PER UNIT TO TWO DECIMAL PLACES.] If MT-RF was purchased from Marley in 2022, what would be the effect on Paibec's profits? [Note: if the buy costs are less than the make costs, enter the difference as a positive number; if the make costs are less than the buy costs, enter the difference as a negative number.] Submit Answer Tries 0/5