Ford Inc. manufactures 29,000 units of part A02 each year. The company's cost per unit for part A02 is:

Direct materials	$ 3.70
Direct labor	12.00
Variable manufacturing overhead	2.30
Fixed manufacturing overhead	9.00
Total cost per part	$ 27.00

An outside supplier has offered to sell 29,000 units of part A02 each year to Ford Inc. for $23 per unit. If Ford Inc. accepts this offer, it can rent out the facilities now being used to manufacture part A02 to another company at an annual rental of $79,000. However, Ford Inc. has calculated that two-thirds of the fixed manufacturing overhead being applied to part A02 will continue even if the part is bought from the outside supplier.

What is the financial advantage of accepting the outside supplier's offer?

• $23,000
• $19,000
• $21,000
• $24,000