McGraw Company uses 5,000 units of Part X each year as a component in the assembly of one of its products. The company is presently producing Part X internally at a total cost of $100,000, computed as follows: Direct materials $ 15,000 Direct labor 30,000 Variable manufacturing overhead 10,000 Fixed manufacturing overhead 45,000 Total cost $ 100,000 An outside supplier has offered to provide Part X at a price of $18 per unit. If McGraw Company stops producing the part internally, one-third of the fixed manufacturing overhead would be eliminated. In addition, if McGraw Company accepts this offer, the facilities now being used to manufacture Part X could be rented to another company at an annual rental of $12,000. Assume that direct labor is a variable cost.

Required: Determine the annual amount of financial advantage or disadvantage for the company of accepting the outside supplier's offer of 5,000 units at $18 per unit.