The Ted Company is considering eliminating the following product line:

	Product AXP
Sales	$42,000
Less variable costs:
Raw materials	26,000
Direct labor	5,800
Contribution margin	$10,200
Less fixed costs:
Production costs allocated to products	15,400
Profit (loss)	$(5,200)

What amount of cost is avoidable if Ted outsources production of this product?

$5,200$47,200$31,800$26,600