Every year Monty Industries manufactures 8,600 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows:

Direct materials		$ 5.00
Direct labor		9.00
Variable manufacturing overhead		7.00
Fixed manufacturing overhead		10.00
Total		$31.00

Wildhorse, Inc., has offered to sell 8,600 units of part 231 to Monty for $34 per unit. If Monty accepts Wildhorses offer, its freed-up facilities could be used to earn $15,000 in contribution margin by manufacturing part 240. In addition, Monty would eliminate 50% 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