Cane Company manufactures two products called Alpha and Beta that sell for $$130$ and $$90,$ respectively. Each product uses only one type of raw material that costs $$5$ per pound. The company has the capacity to annually produce $102,000$ units of each product. Its average cost per unit for each product at this level of activity are given below:

Alpha Beta

Direct materials $ $25$ $ $10$

Direct labor $2221$

Variable manufacturing overhead $177$

Traceable fixed manufacturing overhead $1820$

Variable selling expenses $1410$

Common fixed expenses $1712$

Total cost per unit $ $113$ $ $80$

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.

Foundational $11-10($Algo$)$

$10.$ Assume that Cane expects to produce and sell $52,000$ Alphas during the current year. A supplier has offered to manufacture and deliver $52,000$ Alphas to Cane for a price of $$88$ per unit. What is the financial advantage $($disadvantage$)$ of buying $52,000$ units from the supplier instead of making those units?