The Wise Company manufactures a PT I Component that is used to make several of its products. The managerial accountant reported monthly production costs to produce 1,100 units of PT I Component included:

Direct materials	$22,000
Direct labor	5,100
Variable overhead costs	15,050
Fixed overhead costs	10,050

The managerial accountant estimates that 10% of the fixed overhead costs assigned to PT I Component will no longer be incurred if the company purchases the PT I Component from an outside supplier at $41.50 per unit.

If the manager at Wise Company accepts the offer from the outside supplier, what are the monthly avoidable costs, or those costs that will no longer be incurred? What is the monthly operating income if the manager at Wise Company purchases 1,000 units of PT I Component from an outside supplier? What is the maximum