uses 10,000 units of part in its production process. The cost to make a part is: direct materials, $12; direct labour, $25; variable overhead, $13'...

K Co. uses 10,000 units of part in its production process. The cost to make a part is: direct materials, $12; direct labour, $25; variable overhead, $13’ and applied fixed overhead, $30. K Co. has received a quote of $55 from a potential supplier for this part. If K Co. buys the part, 70% of the applied fixed overhead would continue. K Co. would be better off by?