The Harbor Company currently makes 10,000 bolts per year for $50,000 in total manufacturing costs. The Cove Corporation has offered to sell Harbor the bolts for $4.00 apiece. Harbor has the following cost structure:

Upon further analysis, Harbor notes that the company can eliminate the services of a $15,000 per year supervisor accounted for in fixed factory overhead if they elect to buy from Cove. Harbor's decision to make or buy would result in a comparison of the purchase price of $40,000 to a production cost will be_______________.
 

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Direct material Direct labor Variable Overhead Fixed Overhead Total Total Per Unit $5,000 $0.50 $15,000 $1.50 $10,000 $1.00 $20,000 $2.00 $50,000 $5.00 Direct material Direct labor Variable Overhead Fixed Overhead Total Total Per Unit $5,000 $0.50 $15,000 $1.50 $10,000 $1.00 $20,000 $2.00 $50,000 $5.00

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