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Each of the following situations is independent:

Make vs. Buy (Sourcing Decision) Eggers Company needs 33,000 units of a part to use in producing one of its products. If Eggers buys the part from McMillan Company for $95 instead of making it, Eggers will not use the released facilities in another manufacturing activity. Forty percent of the fixed overhead will continue irrespective of CEO Donald Mickeys decision. The cost data are as follows:

Cost to make the part:
Direct materials	$	29
Direct labor		16
Variable overhead		24
Fixed overhead		30
	$	99

Required:

1. Determine which alternative is more attractive to Eggers, and by what amount.