Assume a company is considering buying 10,000 units of a component part rather than making them. A supplier has agreed to sell the company 10,000 units for a price of $40 per unit. The company's accounting system reports the following costs of making the part 10.000 unita Per Unit per Tear Direct materials $18 $180,000 Direct labor 12 120,000 Variable manufacturing overhead 2 20,000 Fixed manufacturing overhead, traceable 8 80,000 Fixed manufacturing overhead, allocated 4 40,000 Total cost $44 $440,000 One-half of the traceable fixed manufacturing overhead relates to supervisory salaries and the remainder relates to depreciation of equipment with no salvage value. If the company chooses to buy this component part from a supplier, then the supervisor who oversees its production would be discharged. If the company begins buying the part from a supplier, it can use freed up capacity to produce and sell 2150 more units of another product that earns a contribution margin per unit of $7.50. What is the financial advantage (disadvantage) of buying 10,000 units from the supplier? Multiple Choice ${60,000) product that earns a contribution margin per unit of $7.50. What is the name Multiple Choice $(60,000) $(23,875) $(32,150) 0 $13,875) Assume a company manufactures many products, one of which normally sells for $48 per unit. The company's accounting system reports the following unit product cost for this product: Par Unit $18 12 10 $40 Direct materials Direct labor Manufacturing overhead Total cost 12 The company estimates that $3 of its manufocturing overhead varies with respect to the number of units produced. The remainder of its overhead is fixed and unaffected by the volume of units produced within the relevant range. A customer has approached the company with an offer to buy 300 units of a customized version of the product mentioned above for $39. The company can fulfill this order using existing manufacturing capacity. To accommodate the customer's desired product design, the company would Incur additional direct materials cost per unit of $3. It would also have to buy a special tool for $490 that has no other use or resale value after the special order is completed. Assuming that accepting this order will not have any effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the special order? Multiple Choice $(300) $(300) $900 O $410 ON $(1,690) 15 of 20 21 Next >