ian Products manufactures $62,500$ units of part S$-6$ each year for use on its production line. At this level of activity, the cost per unit for part S$-6$ is as follows:

Direct materials $ $6\mathrm{.}75$

Direct labour $12\mathrm{.}75$

Variable overhead $5\mathrm{.}75$

Fixed overhead $10\mathrm{.}95$

Total cost per part $ $36\mathrm{.}20$

An outside supplier has offered to sell $55,000$ units of part S$-6$ each year to Han Products for $$31\mathrm{.}75$ per part. If Xian Products accepts this offer, the facilities now being used to manufacture part S$-6$ could be rented to another company at an annual rental of $$110,000.$ However, Xian Products has determined that $30\%$ of the fixed overhead being applied to part S$-6$ will be avoided if part S$-6$ is purchased from the outside supplier.

Required:

$1.$ What is the net dollar advantage or disadvantage of accepting the outside supplier$$s offer? $($Round "Total costs" and final answer to the nearest whole dollar amount.$)$

$2.$ What is the annual rental value at which the company will be indifferent between the two options? $($Round "Total costs" and final answer to the nearest whole dollar amount.$)$