Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 52,000 units of RX5 follows.

Direct materials	$	4.00
Direct labor		8.00
Overhead		9.00
Total costs per unit		21.00

Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 52,000 units of RX5 for $19.00 per unit.