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. 08 seconds. Question Completion Status: Question 34 4 points S Han Products manufactures 55,000 units of part S-6 each year for use on its
. 08 seconds. Question Completion Status: Question 34 4 points S Han Products manufactures 55,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows Direct materials $ 6 00 Direct labour 12 00 Variable overhead 5.00 Fixed overhead 10 50 Total cost per part $33 50 An outside supplier has offered to sell 48,000 units of part S-6 each year to Han Products for $29 50 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $104,000. However, Han Products has determined that 30% of the fixed overhead being applied to part S-6 will be avoided if part S-6 is purchased from the outside supplier What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? O A Net dollar disadvantage of $138,750. B. Net dollar disadvantage of $34,750. O c Net dollar advantage of $138,750 O D. Net dollar disadvantage of $242,750. O E. Net dollar advantage of $34,750. Moving to the next question prevents changes to this answer. Question 34 of 40
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