Pawistik Corporation makes computer screens that are used in the assembly of laptops which Pawistik sells to the general public. The costs per screen are as follows:
Computer Accessories Inc. has offered to sell Pawistik 50,000 of the screens for $45 each. If Pawistik accepts this offer, the company will be able to eliminate $200,000 in fixed manufacturing overhead costs. What is the cost or benefit of purchasing from Computer Accessories?
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