Every year xyz. produces 2,000 units of a part for one of its products. The cost to produce a unit of these parts includes $150 variable production cost and $120 fixed production cost.An outside supplier offers to sell Bothell the part at $200 per unit. If Bothell purchases the part from the outside supplier, two thirds of the total fixed production cost incurred in the production for the part can be eliminated. What is the annual financial advantage (disadvantage) for Bothell to purchase the part from the outside supplier?

Multiple Choice

• $140,000

• ($100,000)

• $60,000

• ($20,000)