Masse Corporation uses part G18 in one of its products. The company's Accounting Department reports the following costs of producing the 15,900 units of the part that are needed every year.

Per UnitDirect materials$2.80Direct labor$3.80Variable overhead$6.60Supervisor's salary$7.10Depreciation of special equipment$8.20Allocated general overhead$5.30An outside supplier has offered to make the part and sell it to the company for $30.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $21,900 of these allocated general overhead costs would be avoided. In addition, the space used to produce part G18 could be used to make more of one of the company's other products, generating an additional segment margin of $33,000 per year