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An outside supplier has offered to provide the annual requirement of 5.000 of the parts for only $22 each. The company estimates that 80% of
An outside supplier has offered to provide the annual requirement of 5.000 of the parts for only $22 each. The company estimates that 80% of the fixed manufacturing overheod cost above could be eliminoted 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 per-unit dellar advantage or disadvantage of purchasing from the outside supplier would be: Multele cheice 57 advantage $6 disadvantage
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