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Clinton produces whirlpool tubs. Currently the company uses internally manufactured pumps to power water jets. Clinton has found that $40$ percent of the pumps have failed within their $12-$month warranty period, causing huge warranty costs. Because of the company's inability to manufacture high$-$quality pumps, management is considering buying pumps from a reputable manufacturer that also will bear any related warranty costs. Clinton's unit cost of manufacturing pumps is $$73$ per unit, which includes $$17$ of allocated fixed overhead $($primarily depreciation of plant and equipment$).$ Also, the company has spent an average of $$20($labor and parts$)$ repairing each pump returned. Clinton can purchase pumps for $$80$ per pump.

During $2020,$ Clinton plans to sell $16,400$ whirlpools $($requiring $16,400$ pumps$).$ Determine whether the company should make or buy the pumps.

The company should the pumps.

Determine the total amount of cost savings related to the better alternative.

The total amount of cost savings $