Genent's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,010

units are as follows:

Direct materials	$42,000
Direct labor	9,500
Variable overhead costs	31,500
Fixed overhead costs	19,000
Total costs	$102,000

It is estimated that 88% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Genent's Engine Company has the option of purchasing the part from an outside supplier at $96.75 per unit.

If Genent's Engine Company accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total ________.

A.

$102,000

B.

$84,520

C.

$103,520

D.

$83,000