2 Exercise 12-11 Make or Buy Decision [L012-3] 10 points Han Products manufactures 36,000 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 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 4.00 90 2.00 9.00 eBook 23.00 Print An outside supplier has offered to sell 36,000 units of part S-6 each year to Han Products for $19 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 $86,000 References However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier, Required What is the financial advantage (disadvantage) of accepting the outside supplier's offer