Variable costs: Direct material $940 Direct labor 640 Variable overhead 290 Total variable costs $1,870 Fixed costs: Depreciation of equipment $490 Depreciation of building 200 300 Supervisors salaries Total fixed costs Total cost $990 $2,860 The company received an offer from Elite Mini-Bars to produce the insets for $2,070 per unit and supply 900 mini-bars for the coming year's estimated production. If the company accepts this offer and shuts down production of this part of the business, production workers and supervisors will be reassigned to other areas. Assume that for the short-term decision-making process demonstrated in this problem, the company's total labor costs (direct labor and supervisor salaries) will remain the same if the bar inserts are purchased. The specialized equipment cannot be used and has no market value. However, the space occupied by the mini-bar production can be used by a different production group that will lease it for $56,000 per year. A. Calculate the differential cost of mini-bar insert. If an amount box does not require an entry, leave it blank. Variable Costs Direct material Direct labor Variable overhead Fixed Costs Equipment depreciation Building depreciation Supervisor salaries Other Cost Savings Leased space Cost of buying bar inserts Cost of Making 900 Bar Inserts Cost of Buying 900 Bar Inserts Differential Cost (Savings)