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You are a manager at a company that makes customized insulated lunch bags. Your marketing efforts have paid off, and you are expecting demand for

You are a manager at a company that makes customized insulated lunch bags. Your marketing efforts have paid off, and you are expecting demand for an additional 5,000 lunch bags this year. While your factory has the capacity to handle the additional demand, a potential supplier has offered to make the 5,000 bags for $12 per bag. Other information from the financial accounting system is listed below. What is the total cost difference between making and buying the bags?
\table[[Insulated lunch bag,],[Direct material,$6.28
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