Lewis Auto Company manufactures a part for use in its production of automobiles.When 10,000 units are produced, the costs per unit are:

Direct materials$15

Direct manufacturing labor60

Variable manufacturing overhead26

Fixed manufacturing overhead32

Total $133

Monty Company has offered to sell to Lewis Auto Company 10,000 units of the part for $122 per unit.The plant facilities could be used to manufacture another item at a savings of $182,000 if Lewis accepts the offer.In addition, $24 per unit of fixed manufacturing overhead on the original part would be eliminated.

Required:

Which alternative is best for Lewis Auto Company? By how much - please show your work!