ABC enterprise produces baskets for the gift packages the company sells. The company uses 700 baskets in production each

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ABC enterprise produces baskets for the gift packages the
company sells. The company uses 700 baskets in production each
month. The costs of making one basket is $4 for direct materials,
$3 for variable manufacturing overhead, $2 for direct labor, and $5
for fixed manufacturing overhead. The unit cost is based on the
monthly production of 700 baskets. The company determined that 50%
of the fixed manufacturing overhead is avoidable. An outside
supplier has offered to sell ABC the baskets for $12 each, and can
supply all the units it needs. Do the differential analysis to
determine if ABC enterprise should buy the baskets from the
supplier. What is the differential cost to buy from the
supplier?