54) Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $18, computed as follows: 34) $ 8 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 18 An outside supplier has offered to provide the annual requirement of 4,000 of the parts for only $14 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: A) $1 per unit on average B) ($1) per unit on average C) $2 per unit on average D) (S4) per unit on average 55). 55) Accepting a special order will improve overall net operating income if the revenue from the special order exceeds: A) the incremental costs associated with the order. B) the contribution margin on the order. C) the variable costs associated with the order. D) the sunk costs associated with the order. 56) 56) United Industries manufactures a number of products at its highly automated factory. The products are very popular, with demand far exceeding the factory's capacity. To maximize profit, management should rank products based on their: A) contribution margin B) gross margin C) selling price D) contribution margin per unit of the constrained resource