Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows $($based on annual production of $2,000$ units$).$

Direct materials $ $50$

Direct labor $106$

Variable overhead $32$

Fixed overhead $94$

Total $ $282$

Trailblazers has offered to sell the assembly to Mobility for $$220$ each. The total order would amount to $2,000$ rear wheel assemblies per year, which Mobility$$s management will buy instead of make if Mobility can save at least $$20,000$ per year. Accepting Trailblazers$$s offer would eliminate annual fixed overhead of $$80,000.$

Required:

a$.$ Prepare a schedule that shows the total differential costs. $($Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.$)\backslash$table$[[,$Status Quo,Alternative,Difference,$],[$Trailblazers$\text{'}$ offer,,,,$],[$Materials$,,,,],[$Labor$,,,,],[$Variable overhead,,,,$],[$Fixed overhead applied,,,,$],[$Total costs,$$,0,,]]$Answer is not complete.

$\backslash$table$[[$Trailblazers$\text{'}$ offer,$\backslash$table$[[$Status$],[$Quo$]],$Alternative,Difference,$x$