The cost of making a certain part is $16 per part ($10 of variable cost, $6 of fixed).

An outside supplier also makes this part, and charges a price of $9.

If we stop making the part, $2.90 of the fixed cost amount shown above could be avoided/eliminated.

We need 10,000 parts per year. If we stop making the part, and instead buy, how much better off, in dollars, will we be per year?