Outsourcing $($Make$-$or$-$Buy$)$ Decision

Assume a division of HP Inc. currently makes $50,000$ circuit boards per year used in producing diagnostic electronic instruments at a cost of $\backslash (\backslash$$ $50\backslash )$ per board, consisting of variable costs per unit of $\backslash (\backslash$$ $35\backslash )$ and fixed costs per unit of $\backslash (\backslash$$ $15\backslash ).$ Further assume Sanmina Corporation offers to sell HP the $50,000$ circuit boards for $\backslash (\backslash$$ $50\backslash )$ each. If HP accepts this offer, the facilities currently used to make the boards could be rented to one of HP$\text{'}$s suppliers for $\backslash (\backslash$$ $75,000\backslash )$ per year. In addition, $\backslash (\backslash$$ $8\backslash )$ per unit of the fixed overhead applied to the circuit boards would be totally eliminated.

Should HP outsource this component from Sanmina Corporation?

Calculate the net advantage $($disadvantage$)$ to HP of outsourcing the component from Samina Corporation.

Use a negative sign with your answer to indicate a net disadvantage for outsourcing, if appropriate.