6 Exercise 11-11 Make or Buy Decision [L011-3 manufactures 40000 units of part S-6 each year for use on ts production line Alt this level of activity, the cost per unit 125 points for part S-6 is: Dtrect materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part 12.00 2.70 6.80 $ 24.00 An outside supplier has offered to sell 40,000 units of part $-6 each year to Han Products for $22 per part iIf Han Products However, Han Products has detecture part s 6 could be rented to another company at an annual rental of $90,000 has determined that two-thirds of the fixed manufacturing overhead being applied to part $-6 would continu m the outside supplier Required: What is the financial advantage (disadvantage) of acceping the outside suppliers offer? I advantage Fixed manufacturing overhead Total cost per part 6.00 24.00 An outside supplier has offered to sel 40,000 units of part s-6 each year to Han Products for $22 per part itf Han Products accepts used to manfacture part S-6 could be rented to another company at an annual rental of $90000 two thirds of the fixed manufacturing overhead being applied to part S-6 would continue However, Han Products has determined that 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