Question: Canvas G Question 6 Version B Ice Cold is considering dropping component electronic heater. Data from the company's accounting system showing unit costs appear below:

Canvas G Question 6 Version B Ice Cold is considering dropping component electronic heater. Data from the company's accounting system showing unit costs appear below: Direct Materials $ 98,000 Direct Labor $ 73,500 Variable Manufacturing OH $ 85,750 Fixed Manufacturing OH $ 122,500 Variable Selling $ 49,000 Fixed Selling $ 24,500 $ 453,250 Total Ice Cold builds 24,500 units a month. An outside supplier has offered to produce this product for the company. It has been determined that buying this part would reduce variable selling expenses by 34 percent. Fixed manufacturing overhead would continue at 66 percent of current levels. The total fixed selling expenses of the company would remain unchanged by this make or buy decision. Question: If the outsourcing company builds the electronic heater component and charges $367,500.00 for 24,500 units, what is the difference in the savings or loss if the company makes the purchase

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