Ahrends Corporation makes 48,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $15.30 24.30 3.60 29.50 $72.70 02:16925 An outside supplier has offered to sell the company all of these parts it needs for $59.00 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $360,000 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $25.90 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 48,000 units required each year? (Round your intermediate calculations to 2 decimal places.) Multiple Choice 02:16:15 0 $80.20 per unit 0 $72.70 per unit 0 $7.50 per unit 0 $54.30 per unit THE Next > Save & Exit Submit Mcfarlain Corporation is presently making part U98 that is used in one of its products. A total of 16,000 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: Per Unit $2.20 $3.20 $1.30 $3.90 $3.90 $4.20 Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead 02:16:01 An outside supplier has offered to produce and sell the part to the company for $17.45 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, 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 to the facts given above, assume that the space used to produce part U98 could be used to make more of one of the company's other products, generating an additional segment margin of $33,400 per year for that product. What would be the financial advantage (disadvantage) of buying part U98 from the outside supplier and using the freed space to make more of the other product? Multiple Choice ($75,400) . ($84,600) ($17800) $33,400