4 Exercise 13-11 (Algo) Make or Buy Decision (LO13-3] 165 points Han Products manufactures 36,000 units of part S6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 ls: $ 4.20 eBook Direct saterials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part 2.00 $23.00 Print References An outside supplier has offered to sell 36,000 units of part S6 each year to Han Products for $19 per part If Han Products accepts this offer, the facilities now being used to manufacture part S6 could be rented to another company at an annual rental of $86,000 However , Han Products has determined that two-thirds of the forced manufacturing overhead being applied to part 6 would continue even if part 5-6 were purchased from the outside supplier Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer? Exercise 13-15 (Algo) Dropping or Retaining a Segment (LO13-2) 166 points Thalassines kataskeves, SA of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows eBook $ 440.000 $ 133, 51.000 11,00 Print 195 345.00 o Thalassines kitaskeves, S.A. Income Statement-bilgte Pump For the Quarter Ended Harch 31 Sales Variable expenses Variable manufacturing expenses Sales comissions Shipping Total variable expenses Contribution martin Fixed expenses Advertising (for the bilge pump product line) Depreciation of equipment (no resale valve) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department Total fixed expenses Net operating loss References 26.000 120.000 35.000 120.000 12.000 60,000 101,600 $(136.000) "Common costs allocated on the basis of machine-hours. Common costs allocated on the basis of sales dollars. Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company's total general factory overhead or total Purchasing Department expenses Required: What is the financial advantage (disadvantage of discontinuing the bilge pump product line