The per unit costs to manufacture the hose assembly (part 22B) included with the vacuum cleaner are given below:

Part 22B Per Unit cost
Direct Material	$	17
Direct Labor	$	14
Variable Overhead	$	1
Depreciation of Special Equipment	$	3
Supervisor Salary	$	4
General Factory Overhead	$	11
Per Unit Cost	$	50

Additional Information:

The special equipment used to manufacture part 22B has no resale value.

The total amount of general factory overhead, which is allocated on the basis of direct labor hours, would be unaffected by this decision.

The $50 unit product cost is based on 10,000 parts produced each year.

An outside supplier has offered to provide the 10,000 parts at a cost of $42 per part.

The company is trying to decide if it should stop making part 22B and buy it from an outside supplier.

Required:

What is the total avoidable cost of making the part if instead of making it is bought from an outside supplier

What is the total cost of buying the part from an outside supplier

What is the advantage or (disadvantage) of buying the part from an outside supplier. Indicate disadvantage with a minus sign.