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2. DONBELLE COMPANY uses 5,000 units of Part X each year as a component in the assembly of one of its products. The company is
2. DONBELLE COMPANY uses 5,000 units of Part X each year as a component in the assembly of one of its products. The company is presently producing Part X internally at a total cost of PhP100,000, computed as follows: An outside supplier has offered to provide Part X at a price of PhP 18 per unit. If the company stops producing the part internally, one-third of the fixed manufacturing overhead would be eliminated. Required: Prepare an analysis showing the annual peso advantage or disadvantage of accepting the outside supplier's offer
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