Every year Concord Industries manufactures 10,000 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows:

Direct materials $4.00

Direct labor 9.00

Variable manufacturing overhead 7.00

Fixed manufacturing overhead 10.00

Total $30.00

Sunland, Inc., has offered to sell 10,000 units of part 231 to Concord for $32 per unit. If Concord accepts Sunlands offer, its freed-up facilities could be used to earn $11,700 in contribution margin by manufacturing part 240. In addition, Concord would eliminate 40% of the fixed overhead applied to part 231.

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

Total relevant cost to make $_________

Net relevant cost to buy $__________

Should Concord accept Sunlands offer? Y/N