make or buy decision

Make or Buy Decision Yeung Company has been producing two bearings, D10 and D15, for use on its assembly line. Data relating to these bearings are presented below: Variable overhead is applied on a basis of direct labour-hours. Fixed overhead is applied on a basis of machine-hours. 1/4 of the fixed overhead consists of salaries for direct supervision of production of the bearings. The remainder consists of general factory overhead. Yeung's management is thinking about devoting additional machine-time to a new product line. If it does devote the extra time, only 40,000 machine-hours will be available each year for the production of the D10 and D15 bearings. An outside supplier is prepared to make all the D10 bearing for $180.00 each and all the D15 bearing for $202.50 each. This outside supplier will not accept the order for only part of Yeung's needs for these two bearings, so the 40,000 available machine-hours will be idle if Yeung purchases its bearings outside. Required: What will be the overall net benefit or loss if Yeung accepts the outside supplier's offer for all of its D10 and D15 bearing needs? Restated, how much must to the new product line earn to offset any negative effects of outsourcing the production of D10 and D15