King Cty Bikes (KCB) produces bicycles, Costs to manufacture and market the bicycles at last year's volume level of 1,850 bicycles per month are shown in the following KCB expects to produce and sell 2,250 bicycles per month in the coming year. The bicycies sell for $610 each. An outside contractor makes an olfer to assemble KCB's bicycles and ship them directly to KCE's customers as orders are received frem its sales force. It will charge KCB 5165 per bicycle. KCB would provide the matenals for each bicycle, but the outside contractor would assemble, bex, and ship them. If KCB accepts the offer, its variable manufacturing costs would be reduced by 40%, and its vasiable nonmanufocturing costs would be cut by 55%. In addition, it would be able to save $11,285 of foxed. manufacturing costs: foxed nonmanufacturing costs would be unchanged. KCe's marketing and production managers think that the idle resources could be used to produce and sell 80 racing bicydes, each with an estimated $700 contribution margin and no odditional foxed cotts. REQUIRED [Note: Round unit cost computations to two decimal places.] What is the difference in Kces's monthiy costs between accepting the proposal and rejecting the proposal? (Note: If the costs of accepting the proposal are less than the costs of relecting is, enter the differench as a positive number; if the accept costs are more than the reject costs, eater the ditference as a negative number.) Tries 0/6