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1. Make or buy: Vance Refrigeration Corporation produces 14,000 compressors each year, which are used in the production of its air conditioners. The per unit
1. Make or buy: Vance Refrigeration Corporation produces 14,000 compressors each year, which are used in the production of its air conditioners. The per unit product cost of this compressor part is $17, computed as follows: Variable manufacturing costs Fixed manufacturing costs Unit product cost $11 6 $17 Instead of making the compressors, Vance can purchase them from an outside supplier for $14.50 each. If they buy the compressors, all variable manufacturing costs would be avoided, and two-thirds of the fixed manufacturing costs would also be avoided. Based on just this information, calculate the financial advantage (disadvantage) of buying the compressors from the outside supplier
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