Anderson Company manufactures 30,000 units of part X258 each year for use on its production line. The cost per unit for part X258 at this level of activity is Direct materials Direct labor Variable manufacturing overhead $2.40 Fixed manufacturing overhead Total cost per part $3.60 $10.00 9.00 $25.00 Cooper Corporation has offered to sell 30,000 units of part X258 each year to Anderson Company for $21 per part. If Anderson Company accepts this offer, the facilities they use to manufacture part X258 could be rented to another company at an annual rental of $80,000. Anderson Company has determined that two-thirds of the fixed manufacturing overhead being applied to part X258 would continue even if part X258 were purchased from Cooper Corporation. Will profits will increase or decrease if the outside supplier's offer is accepted? By how much? Only the costs that can be avoided as a result of purchasing from the outside are relevant in a make-or-buy decision. Per Unit Differential Costs 30,000 Units Make Buy Make Buy ost of purchasin ost of making: Direct material:s Direct labor Variable overhead Fixed overhead otal cost The $ continuing to produce the part internally, so the complete analysis is: rental value of the space being used to produce part S-6 is an opportunity cost of Make Lu otal cost, from above Rental value of the space (opportunity cost) otal cost, including opportunity cost Net advantage in favor of Profits would increase/decrease (circle one) by S if the outside supplier's offer is accepted