The company has an offer from Duvall Valves to produce the part for $2,100 per unit and supply 1,050 valves (the number needed in the coming year). If the company accepts this offer and shuts down production of valves, production workers and supervisors will be reassigned to other areas. The equipment cannot be used elsewhere in the company, and it has no market value. However, the space occupied by the production of the valve can be used by another production group that is currently leasing space for $55,100 per year

	Cost per Unit
Variable costs
direct material	960
direct labor	630
variable OH	280
Total Variable Costs	1,870
Fixed Costs
Depreciation of equipment	520
depreciation of building	210
supervisory salaries	280
total fixed costs	1010
total cost	2880

Should the company make or buy the valve?

Incremental (Cost or savings) of buying valves is ( ). the company should (make/buy) the valves.