Robin Company currently produces 8,000 units of part B13. Current costs for part B13 are as follows:
Direct materials $12
Direct labor 9
Factory rent 7
Administrative 10
General factory overhead 7
Total $45
If the company decides to buy part B13, 50% of the administrative costs would be avoided. All of the Robin Company items, including part B13, are manufactured in the same rented production facility. The company has an offer from a wholesaler that wishes to sell the part to Robin for $31 per unit. What effect will occur if the company decides to accept the offer?