Elora Products is deciding whether to outsource the production of a certain component that is included in all of its products. It currently costs Elora Products $$1\mathrm{.}60$ to make each component in$-$house. If Elora Products outsources, it can buy the component ready$-$made for $$1\mathrm{.}30$ each and can shut down the production facilities it is currently using to manufacture the component and save $$21,000$ a year in fixed costs. Annual requirement for the component is $15,000$ units. What is the effect of outsourcing?

The total savings if outsourced is: