MR WONDERFUL CORPORATION manufactures widgets. Currently, the company is scheduled to manufacture and sell 8,000 of the Type A widget during the upcoming year. The usual selling price of a Type A widget is $73. The following per-unit costs are estimated in connection with the production of one Type A widget:

Direct materials	$5.00
Direct Labor	$6.00
Manufacturing overhead:
Variable	$7.00
Fixed	$8.00
Selling costs:
Commissions	$1.00
Shipping	$1.50
Fixed	$1.00
	$29.50

Commissions and shipping are considered variable.

They are considering the outsourcing of the production of Type A widgets to a foreign producer, who has offered to produce the 8,000 Type A widgets at a per- unit cost of $35.

The following additional information is available if they choose to buy the Type A widget, rather than produce it internally:

1. The production of the Type A widget requires two supervisors, each of whom earns a fixed salary of $50,000 per year. One of these supervisors would be reassigned to the Type B widget production. The other would, unfortunately, have to be let go.
2. The freed-up capacity could be used to product more of their signature Type B widget, which would generate an additional contribution margin of $75,000.
3. Should the offer from the foreign supplier be accepted? Yes or No, and by how much?