Make vs$.$ Buy

XYZ Company manufactures $10,000$ special gears for use in its annual

oroduction activities. The following costs are reported:

Parts Plus has offered to sell XYZ $10,000$ of these gears for $$17$ per unit.

I XYZ accepts the offer, $$40,000$ of the fixed factory overhead to special

gears would be totally eliminated. What would be the effect on XYZ$\text{'}$s

income of accepting Parts Plus's offer $($Should XYZ make or buy the parts$)?$

Show the cost to make the gears and the cost to buy the gears.