Han Products manufactures 50,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials $ 5.50 Direct...

Han Products manufactures 50,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as
follows:
Direct materials $ 5.50
Direct labour 11.50
Variable overhead 4.50
Fixed overhead 10.20
Total cost per part $31.70
An outside supplier has offered to sell 43,500 units of part S-6 each year to Han Products for $28.00 per part. If Han Products accepts this offer, the
facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $100,000. However, Han Products has
determined that 30% of the fixed overhead being applied to part S-6 will be avoided if part S-6 is purchased from the outside supplier.

Required:
1. What is the net dollar advantage or disadvantage of accepting the outside supplier’s offer? (Round "Total costs" and final answer to the nearest
whole dollar amount.)