Could you help to solve it also could you send me the method that you use

Premier Company manufactures gear model G37, which is used in several of its farm-equipment products. Annual production volume of G37 is 20,000 units. Unit costs for G37 are as follows: Direct materials costs $55 Direct labor costs $30 Variable overhead costs $25 Fixed overhead costs $15 Total Costs $125 Alternatively, Premier can purchase gear model G37 from an outside supplier for $120 per unit. If G37 is outsourced, Premier can use the facility where G37 is currently manufactured for production of another gear-model G49. This would save Premier $113,000 in facility rental and other costs presently incurred. 1. Should Premier make or buy G37? By how much will Premier be better off by choosing your decision rather than the alternative