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Oxford Engineering manufactures mal engines. The engines are sold to manufacturers who install them in such products as lawn mowers. The company currently manufactures all

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Oxford Engineering manufactures mal engines. The engines are sold to manufacturers who install them in such products as lawn mowers. The company currently manufactures all the parts used in these engines but is considering a proposal from an external supplier to supply the starter assembly used in these engines. The starter assembly is currently manufactured in Division 3 of Oxford Engineering. Last year, Division 3 manufactured 155,000 starter assemblies, but over the next several years, it is expected that 194,000 assemblies will be needed each year. Total costs related to the starter assembly for last year were as follows: Direct material Direct labor Total overhead $381.100 $393,800 $600,000 $1,305, 100 Total Further analysis of overhead revealed the following information . 106,000 of overhead was variable . $127,000 of the fred overhead were located costs that will continue even if the production of the starter sembly is discontinued Tunich Hectronics, a reliable supplier has offered to supply starter my uits $6.95 perunt. If the company buy the bly from Tidi, tales of another great can be creased, resulting in coal contribution margin of $40,000 REQUIRED by how much will ford Engineering's total profits change they decide to buy the starter from Tidnih Electronic tead of making it thems? (Note: the buys are less than the makers, enter the difference as a positive number of the buy costs are more than the make costs, enter the Grences negative number)

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