10. Session Company uses 5,000 units of Part Y each year as a component in the assembly of one of its products. The company is presently producing Part Y internally at a total cost of $72,000 as follows:

Direct materials	$18,000
Direct labor	$20,000
Variable MOH	$10,000
Fixed MOH	$24,000
Total costs	$72,000

An outside supplier has offered to provide Part Y at a price of $12 per unit. If Session Company stops producing the part internally, one-third of the fixed manufacturing overhead would be eliminated. Accepting the outside supplier's offer leads to an annual advantage/disadvantage of:

Advantage of $4,000

Disadvantage of $4,000

Disadvantage of $12,000

Advantage of $12,000