Assume that a company makes $30,000$ units of Part A each year. At this level of production, the company$$s accounting system reports the following cost per unit:

Direct materials $ $16$

Direct labor $10$

Variable manufacturing overhead $4$

Fixed manufacturing overhead $8$

Total cost per unit $ $38$

An outside supplier has offered to sell the company $30,000$ parts per year for a price of $$33$ per part. The company believes that $$160,000$ of the fixed manufacturing overhead cost being allocated to this part will continue to be incurred even if the part is purchased from the outside supplier. What is the financial advantage $($disadvantage$)$ of buying the parts from the outside supplier?

Multiple Choice

$$(70,000)$

$$10,000$

$$70,000$

$$(10,000)$