Every year Ayayai Industries manufactures 5,000 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows:

Direct materials		$ 3.00
Direct labor		9.00
Variable manufacturing overhead		5.00
Fixed manufacturing overhead		10.00
Total		$27.00

Crane, Inc., has offered to sell 5,000 units of part 231 to Ayayai for $32 per unit. If Ayayai accepts Crane's offer, its freed-up facilities could be used to earn $10,000 in contribution margin by manufacturing part 240. In addition, Ayayai would eliminate 40% of the fixed overhead applied to part 231.

(a)

Calculate total relevant cost to make and net cost to buy.

Total relevant cost to make	$enter a dollar amount
Net relevant cost to buy	$enter a dollar amount

(b)

Should Ayayai accept Crane's offer?