29. Schmidt Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: Direct materials $ 45,000 Direct labor 65,000 Variable factory overhead 30,000 Fixed factory overhead 70,000 Total costs $210,000 It is estimated that 40% of the fixed factory overhead costs will no longer be incurred if the company purchases the part from an outside supplier. It is also estimated that Schmidt Corporation could use the facilities currently used to manufacture the part to manufacture a new product and generate an operating profit of $28,000. Phil Company has offered to sell 10,000 units of the same part to Schmidt Corporation for $18 per unit. If Schmidt Corporation buys from Phil Company, they will have an a. advantage of $16,000. b. advantage of $16,500. c. advantage of $17,000. d. advantage of $17,500. e. advantage of $18,000