Iota Company manufactures a component used in its main product. During the current year, the costs to produce 20,000 units of this component were $225,000, consisting of:

		Variable (per unit)		Fixed
Direct Materials	$	4.00
Direct Labor	$	2.00
Manufacturing Overhead	$	1.50	$	75,000
	$	7.50

Another company has offered to manufacture the 20,000 components for Iota for $12.00 each. If Iota buys the components, all variable costs and 30% of the fixed costs are avoidable, and the company can also rent out the space currently used to manufacture the components for $40,000 per year. What is the financial advantage (disadvantage) to Iota of buying the parts?