Suppose that each year Company ABC manufactures 30,000 units of part A. At this level of production, the company's accounting system reports the following costs per unit:

Direct Materials $16

Direct labor 10

Indirect manufacturing costs (variable) 4

Indirect manufacturing costs (fixed) 8

Total cost per unit $38

An outside supplier has offered to sell the company all 30,000 units of part A at a price of $33 per unit. Fixed costs will continue to be incurred even if the company decides to purchase the units from the external supplier. What is the financial advantage (disadvantage) of buying the units instead of manufacturing them?

• $150,000
• $(90,000)
• $(150,000)
• $90,000