AI is considering purchasing a new component, CP8, to replace an existing component, CP5, in production. CP8 is more expensive than CP5 and will increase direct material cost by $2. There will also be a 20% reduction in machine-hours required for the production. Moreover, sales are expected to increase by 10% to 99,000 units per year as the selling price remains unchanged at $80 per unit. All other costs are unaffected by the use of the new component, CP8.