Assume a company is considering using available space to make 10.000 units of a component part that it has been buying from a supplier for a price of $41.25 per unit. The company's accounting system estimates the following costs of making the part 10,000 units Per Unit per Year Direct materials $. 16 $ 160,000 Direct labor 120,000 Variable manufacturing overhead 20,000 Yixed manufacturing over bead, traceable B 80,000 Fixed manufacturing overhead, allocated 40,000 Total cont $ 420,000 12 2 4 One-half of the traceable fixed manufacturing overhead relates to a supervisor that would have to be hired to oversee production of the part. The remainder of the traceable fixed manufacturing overhead relates to depreciation of equipment that the company already owns. This equipment has 20,000 units of unused capacity, no resale volue, and it does wear out through use. The allocated fixed manufacturing overhead relates to general overhead costs, such as the plant manager's salary, lighting, heating and cooling costs, and plant insurance costs. What is the financial advantage (disadvantage) of making 10,000 units instead of buying them from the supplier? Multiple Choice $72,500 0 $20,000