Harrison Enterprises currently produces 8,000 units of part B13. Current unit costs for part B13 are as follows:

Direct materials$12

Direct labor9

Factory rent7

Administrative costs10

General factory overhead (allocated)7

Total$45

If Harrison decides to buy part B13, 50% of the administrative costs would be avoided. All of the company's items, including part B13, are manufactured in the same rented production facility. The company has an offer from a wholesaler that wishes to sell the part to Harrison for $31 per unit. What will occur if the company accepts the offer?

1. The cost for this part will increase by $5 per unit.
2. The cost for this part will be the same.
3. The cost for this part will decrease by $14 per unit.
4. The cost for this part will decrease by $10 per unit.