Make sure you understand the two alternatives. . The "make" means that KCSB assembles and ships all of its regular bicycles The "buy" means that KCSB pays another firm to assemble and ship some of its regular bicycles and uses the freed-up resources to assemble and ship specialty racing bicycles. TIP: The revenue and costs of the regular bicycles that KCSB will assemble itself under both the make and the buy alternatives are common and can be ignored King City Specialty Bikes (KCSB) produces high-end bicycles. Costs to manufacture and market the bicycles at last year's volume level of 2,000 bicycles per month are shown in the following table: Variable manufacturing per unit Total fixed manufacturing Variable nonmanufacturing per unit Total fixed nonmanufacturing $231.00 $252,000 $67.00 $286,000 KCSB expects to produce and sell 2,250 bicycles per month in the coming year. The bicycles sell for $630 each KCSB receives a proposal from an outside contractor who, for $170 per bicycle, will assemble 850 bicycles per month and ship them directly to KCSB's customers as orders are received from KCSB's sales force. KCSB would provide the materials for each bicycle, but the outside contractor would assemble, box, and ship the bicycles. The variable manufacturing costs would be reduced by 40% for the 850 bicycles assembled by the outside contractor, and variable non manufacturing costs for the 850 bicycles would be cut by 55%. KCSB's marketing manager thinks that it could sell 75 specialty racing bicycles per month for $6,500 each, and its production manager thinks that it could use the idle resources to produce each of these bicycles for variable manufacturing costs of $5,500 per bicycle and variable nonmanufacturing costs of $300 per bicycle If KCSB accepts the proposal, it would be able to save $12,600 of fixed manufacturing costs; fixed non manufacturing costs would be unchanged REQUIRED [Note: Round unit cost computations to the nearest cent] What is the difference in KCSB's monthly costs between accepting the proposal and rejecting the proposal? (Note: If the costs of accepting the proposal are less than the costs of rejecting it, enter the difference as a positive number; if the accept costs are more than the reject costs, enter the difference as a negative number.)