00 Penagos Corporation is presently making part 243 that is used in one of its products. A total of 5,000 units of this part we produced and used every year. The company's Accounting Department reports the following costs of producing the purtat this level of activity Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $1.10 $3.10 $6.90 $5.80 $5.20 $5.60 An outside supplier has offered to produce and sell the part to the company for $20.80 each. If the other is accepted the supervisor's salary and all of the variable costs, including direct labor can be avoided. The special equipment used to make the part was purchased many years ago and has no savage value or other use. The located general overhead represents fixed costs of the entire company if the outside suppler's offer were accepted only $4,000 of these allocated general overhead costs would be avoided. # management decides to buy part 243 from the outside supplier rather than to continue making the part what would be the annual financial advantage disavantage Multiple Choice $345001 530 5001 $15.5001 38.500