Xian Products manufactures $45,000$ units of part S$-6$ each year for use on its production line. At this level of activity, the cost per unit for part S$-6$ is as follows:

Direct materials $ $5\mathrm{.}00$

Direct labour $11\mathrm{.}00$

Variable overhead $4\mathrm{.}00$

Fixed overhead $9\mathrm{.}90$

Total cost per part $ $29\mathrm{.}90$

An outside supplier has offered to sell $39,500$ units of part S$-6$ each year to Han Products for $$26\mathrm{.}50$ per part. If Xian Products accepts this offer, the facilities now being used to manufacture part S$-6$ could be rented to another company at an annual rental of $$96,000.$ However, Xian Products has determined that $30\%$ of the fixed overhead being applied to part S$-6$ will be avoided if part S$-6$ is purchased from the outside supplier.