An octside supplier thas offered to meke the part and sell is to the company for $29.00 each. If this affer is accepted, the wupervisoris salary and alf of the variable costs, including direct fabor, can be avoided. The special equipment used to make the part wins purchased many years ago and has no salvage value or other use. The allocated general overhend represents fined costs of the entith company, if the outside supplier's offer were occepted, only $4.600 af these allocated general overhead costs would be avoleded. th addition, the space used to proctuce part Q89 could be used to make more of one of the company's other protucth. 9 enerating an additional segment margin of $16.700 per year for that peoduct. Required: a. What is the financial advantage (disadvantage) of accepting the outside supplier's offer? b. Should the company make or buy 089 ? Recher Corporation uses part QB9 in one of its products. The company's Accounting Department reports the following costs of producing the 8,600 units of the part that are needod every year. An outside supplier has offered to make the part and sell it to the company for $29.00 each. If this offer is accepted, the supervisor's salary and ail of the variabie 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. If the outside supplier's offer were accepted, only $4,600 of these allocated general overhead costs would be avoided. In addition, the space used to produce part Q89 could be used to make more of one of the company's other products, generating an additional segment margin of $16.700 per year for that product. Required: a. What is the financial advantage (disadvantage) of accepting the outside supplier's offer? b. Should the company make or buy Q89