Annual fixed cost $=$ $$42,000$

Inspection variable cost per unit $=$ $$15\mathrm{.}00$

A marketing representative of NEW$-$SPEC, a firm that specializes in providing manual inspection processes for other firms, approached Paris Manufacturing and offered to inspect parts for $$25\mathrm{.}00$ each with no fixed cost. It assured Paris Manufacturing that the accuracy and quality of its manual inspections would equal that of the automated inspection system. Demand for the upcoming year is forecast to be $11,000$ units. Should the manufacturer accept the offer? This problem includes break$-$even calculations. For a review of how to calculate break$-$even analysis, please refer to Chapter $6$ Equations $6\mathrm{.}1,6\mathrm{.}2,$ and $6\mathrm{.}3.$ Round your answer for the breakeven volume to the nearest whole number and round your answer for the amount of saving$/$loss to the nearest dollar.