Mohave Corp is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from Willow Co. to produce 8, 300 units per year for $10 each Mohave has the following information about its own production of the tote bags. Mohave has determined that all variable costs could be eliminated by dropping production of the tote bags while 60 percent of the fixed overhead cost is unavoidable. At this time Mohave has no specific use in mind for the space currently dedicated to producing the tote bags Compute the difference in cost between making and buying the umbrella tote bag Differential Cost of Making Versus Buying