An outside supplier has offered to sell 20,000 units of part R-3 each year to Royal company for $ 23.50 per part. If Royal Company accepts this offer, the facilities now being used to manufacture part R-3 could be rented to another company at an annual rental of $ 150,000. However, Royal company has determined that $ 6 of the fixed manufacturing overhead being applied to part R-3 would continue even if part R-3 were purchased from the outside supplier.