Outsourcing $($Make$-$or$-$Buy$)$ Decision

Assume a division of Hewlett$-$Packard currently makes $12,000$ circuit boards per year used in producing diagnostic electronic instruments at a cost of $$37$ per board, consisting of variable costs per unit of $$25$ and fixed costs per unit of $$12.$ Further assume Sanmina Corporation offers to sell Hewlett$-$Packard the $12,000$ circuit boards for $$37$ each. If Hewlett$-$Packard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett$-$Packard's suppliers for $$55,000$ per year. In addition, $$7$ per unit of the fixed overhead applied to the circuit boards would be totally eliminated.

Should HP outsource this component from Sanmina Corporation?

Calculate the net advantage $($disadvantage$)$ to HP of outsourcing the component from Samina Corporation.

Use a negative sign with your answer to indicate a net disadvantage for outsourcing, if appropriate.