Every year Martinez Industries manufactures $5,300$ units of part $231$ for use in its production cycle. The per unit costs of part $231$ are

as follows:

Sandhill, Inc., has offered to sell $5,300$ units of part $231$ to Martinez for $$32$ per unit. If Martinez accepts Sandhill's offer, its freed$-$up

facilities could be used to earn $$10,600$ in contribution margin by manufacturing part $240.$ In addition, Martinez would eliminate $40\%$

of the fixed overhead applied to part $231.$

$($a$)$

Your answer is partially correct.

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

Total relevant cost to make $

Net relevant cost to buy