TBI Ltd. makes tennis balls and other tennis-related items. This years expected production of tennis balls is 15,000 tins (each consisting of three tennis balls). Cost data are as follows:

	Per Tin			15,000 Tins
Product costs directly traceable to balls:
Direct materials	$	3.00		$	45,000
Direct labour		2.00			30,000
Variable manufacturing overhead		1.75			26,250
Fixed manufacturing overhead					2,500
Common costs allocated to this product line					21,500
					125,250

The full cost of one tin of tennis balls is $8.35 per unit. TBI has received an offer from an outside supplier to supply any desired quantity of balls at a price of $7.01 per tin of three tennis balls. The Cost Accounting department has provided the following information;

a.	Costs of direct materials, direct labour, and variable overhead will be saved if the balls are purchased from outside.
b.	The direct fixed manufacturing overhead is the cost of leasing the die machine that stamps out the balls. The machine can produce a maximum of 60,000 balls per year. If the balls are bought, the machine will no longer be needed.
c.	No other costs would be affected.

Required:

1.	Prepare an analysis showing whether TBI would be better off making or buying the balls at a projected volume of 15,000 tins (45,000 tennis balls). (Round "Per Unit" answers to 2 decimal places.)