W.T. Ginsburg Engine Company manufactures part ACT30107 used in several of its engine models. Monthly production costs for 1,090 units are as follows:

Direct materials

$46,000

Direct labor

10,500

Variable overhead costs

32,500

Fixed overhead costs

22,000

Total costs

$111,000

It is estimated that 6% of the fixed overhead costs assigned to ACT30107 will no longer be incurred if the company purchases ACT30107 from the outside supplier. W.T Ginsburg Engine Company has the option of purchasing the part from an outside supplier at $94.75 per unit. If the company accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total ________.

		$111,000
		$89,000
		$112,320
		$90,320