Answer:
$190,000
Explanation:
Regis produces 30,000 plugs per year and its overhead costs are $8, so their variable costs are $28 per plug (=$36 - $8).
Orlan offers to sell them the same plugs at $33 per plug, which means that Regis will be paying $5 more per plug than its own variable costs.
Regis costs will increase $5 x 30,000 = $150,000 per year.
Its fixed costs will decrease by $60,000 if they decide to purchase the plugs.
Plus it can rent the facilities at XXX per year? since it plans to have $100,000 in net savings per year:
$100,000 = $60,000 + XXX - $150,000
$100,000 = XXX - $90,000
XXX = $190,000