The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. Product 1 (P1) is sold in bulk to customizing shops, while Product 2 (P2) is sold directly to consumers. Dub's estimated operating data for the year follows. Product 1 Product 2 Sales Price $250 each $320 each Var Mfg $50 each $55 each Var G&A Fixed Mfg Fixed G&A Units Produced Product Margin $40 each $100,000 $ 80,000 1,000 ($20,000) $65 each $150,000 $120,000 2,000 $130,000 The Dubs division is currently operating at 75% of it's maximum capacity, producing 1,000 units of P1 and 2,000 units of P2. Due to its lack of profitability, management is considering dropping P1. Management anticipates that dropping Pl will shift 570 units of demand to P2. Further, avoidable fixed manufacturing costs of $60,000 and avoidable fixed G&A costs of $30,000 could be saved annually. If this action is taken what would be the increase in the total product margin (equals divisional profitability)? Round to the Nearest $1.00. If the result decreases profits use a negative number, e.g. -2000. The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs is currently operating below its capacity of 4,000 units and in the next year expects to produce and sell 1,000 units each of its two products, P1 and P2. Dubs manufactures wheel (lug) nuts, a set of these items (20 pieces per set) is a component part used in each of its products. A supplier has offered to sell Dubs the 2,000 sets of wheel nuts it would require for $26.11 per set. The accounting records for Dubs assigns the following costs to the manufacture of one wheel nut set: Direct Materials Direct Labor Variable Mfg. OH $9.00 $1.00 $3.00 At the current level of capacity, annual fixed manufacturing costs traceable to the production of wheel nuts amount to $40,000 per year in total and mostly relate to rented machinery. What is the total amount Dubs would save per year by accepting the supplier's offer? Round your solution to the nearest $1.00. If it would be more expensive to buy from the supplier express your answer as a negative number such as -2000