Please show the steps for solving the problem, instead of just the answer alone.

Exercise 7-12 Pearl City produces whirlpool tubs. Currently the company uses internally manufactured pumps to power water jets. Pearl City 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. Pearl City's unit cost of manufacturing pumps is $78 per unit, which includes $19 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. Pearl City can purchase pumps for $84 per pump. During 2017, Pearl City plans to sell 16,200 whirlpools (requiring 16,200 pumps). Determine whether the company should make or buy the pumps The company should Determine the total amount of cost savings related to the better alternative. The total amount of cost savings the pumps