Novak Manufacturing incurs unit costs of $7.00 ($5.00 variable and $2.00 fixed) in making a sub-assembly part for its finished products. Asupplier offers to make 12,500 of the parts for $5.60 per unit. If it accepts the offer, Novak will save all variable costs and $1.00 of fixed costs. Prepare an analysis showing the total cast savings, if any that Novak will realize by buying the part