Stewart's annual requirement for these components is 8,000 units of B12 and 11,000 units of B18. Recently, Stewart's management decided to devote additional machine time to other product lines resulting in only 41,000 machine hours per year that can be dedicated to the production of the bearings. An outside company has offered to sell Stewart the annual supply of the bearings at prices of $11.25 for B12 and $13.50 for B18. Stewart wants to schedule the otherwise idle 41,000 machine hours to produce bearings so that the company can minimize its costs (maximize its net benefits).

Note 1. Variable manufacturing overhead is applied on the basis of direct labor hours. Note 2. Fixed manufacturing overhead is applied on the basis of machine hours.

Note 2. Fixed manufacturing overhead is applied on the basis of machine hours.

The net benefit (loss) per machine hour that would result if Stewart accepts the supplier's offer of $13.50 per unit for Component B18 is