Thyssenkrupp manufactures 9,000 steel beams per year. The cost per beam is as follows:

• Direct materials: €45
• Direct labor: €35
• Variable manufacturing overhead: €20
• Fixed manufacturing overhead: €10

Voestalpine offers to sell 9,000 beams at €105 each. If the offer is accepted, Thyssenkrupp will save €45,000 in fixed overhead.

1. Perform a differential analysis to decide if Thyssenkrupp should make or buy the beams.
2. Calculate the total cost savings or additional costs if the offer is accepted.