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7. Part S is used in one of Hab Corporation's products. The company makes 12,000 units of this part each year. The company's Accounting Department reports the following costs of producing the part at this level of activity Per Unit Direct labor . Variable manufacturing overhead.. Supervisors salary Depreciation of special equipment Allocated general overhead $6.30 $4.80 $7.00 $8.60 $7.20 An outside supplier has offered to produce this part and sell it to the company for $37.70 each. If this offer is accepted, the supervisor's salary and all of the variable costs can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside suppliers offer were accepted, only $17,000 of these allocated general overhead costs would be avoided The annual financial advantage (disadvantage) for the company resulting from buying the part from the outside supplier would be A) ($5,800) B) ($22,800) C) ($149,800) D) ($39,800) Part M is used by McVee Corporation to make one of its products. A total of 13,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: 8. Per Unit $2.90 Direct materials Direct labor Yariable mranufacturing overthead $7.50 $8.00 Supervisor's salary $3.40 Allocated general overhead.. $7.00 An outside supplier has offered to make the part and sell it to the company for $29.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally In addition, the space used to make part M could be used to make more of one of the company's other products, generating an additional segment margin of $25,000 per year for that product The annual financial advantage (disadvantage) for the company as a result of buying part M from the outside supplier should be: A) $25,000 B) ($79,000) C) ($35,400) D) $14,600