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Elena Martinez is a managerial accountant at Paibec Corporation. Paibec is under intense cost competition, and Martinez was asked to evaluate whether Paibec should continue to manufacture part MT-RF or purchase it from Marley Company in 2022. Marley had submitted a bid to supply the 33,000 MT-RF units that Paibec needs for 2022 at a price of $18.60 each.

From 2021 plant records and interviews with Janice Liu, the plant manager, Martinez gathered the following information regarding Paibec's costs to manufacture 31,000 units of MT-RF in 2021:

Direct materials	$186,000
Direct labor	155,000
Plant space rental [fixed]	83,000
Equipment lease [fixed]	37,000
Other overhead
Variable	106,020
Fixed	129,580
Total	$696,600

Liu also told her that:

• if MT-RF was not purchased from Marley, direct material and direct labor costs per unit were more likely to be higher in 2022 by 8% and 3%, respectively,
• if MT-RF was purchased from Marley, $10,000 of the fixed overhead costs could be saved.
• if MT-RF was purchased from Marley, plant space will not have to be rented, and equipment will not have to be leased, but it will cost $7,500 and $2,000, respectively, to terminate the two contracts.

Martinez estimated that 33,000 units of MT-RF would be needed in 2022.

REQUIRED [ROUND ALL VARIABLE COSTS PER UNIT TO TWO DECIMAL PLACES.]

If MT-RF was purchased from Marley in 2022, what would be the effect on Paibec's profits? [Note: if the buy costs are less than the make costs, enter the difference as a positive number; if the make costs are less than the buy costs, enter the difference as a negative number.]

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