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

Mountain Air Limited manufactures a line of room air purifiers. Management is currently evaluating the possible production of an air purifier for automobiles. Based on an annual volume of $10,000$ units, the predicted cost per unit of an auto air purifier follows.

Direct materials$$8\mathrm{.}00$Direct labor$1\mathrm{.}50$Factory overhead$9\mathrm{.}00$Total$$18\mathrm{.}50$

North Falls Physician's Service Center has offered to take over all of Dr$.$ Rahavy's billings and collections for an annual fee of $$12,000.$ If Dr$.$ Rahavy accepts this offer, he will no longer need the bookkeeper. The bookkeeper's wages and fringe benefits amount to $$15$ per hour, and the bookkeeper works $50$ weeks per year. With all the billings and collections done elsewhere, Dr$.$ Rahavy will have two additional hours available per week to see patients. He sees an average of three patients per hour at an average fee of $$30$ per visit. Dr$.$ Rahavy's practice is expanding, and new patients often have to wait several weeks for an appointment. He has resisted expanding his office hours or working more than $50$ weeks per year. Finally, if Dr$.$ Rahavy signs on with the center, he will no longer need to rent a records storage facility for $$100$ per month.

Conduct a relevant cost analysis to determine if it is profitable to outsource the bookkeeping.

Calculate the net advantage $($disadvantage$)$of outsourcing the bookkeeping.

Use a negative sign with your answer to$$indicate a net disadvantage,$$if applicable.