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: $16 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 4 4 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 $156,200 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? Assume a company purchases honeycombs from beekeepers for $2.00 a pound. The honey can be sold in raw form for $3.20 a pound or it can be used to make honey drop candies. Each package of candies contains three-quarters of a pound of honey and can be sold for $4.40. In addition to the cost of the honey, making and selling each container of candies incurs additional variable costs of $1.10 per unit. The monthly fixed costs associated with making the candies include: Master candy-maker's salary Depreciation of candy-making equipment Salary of salesperson dedicated to this product $3,800 400 2,000 $6,200 Total fixed costs The candy-making equipment does not wear out through use and it has no resale value. Assuming the company makes and sells 6,100 containers of candy, what is the financial advantage (disadvantage) of continuing to process raw honey into candies? 30 Assume a company purchases honeycombs from beekeepers for $2.00 a pound. The honey can be sold in raw form for $3.20 a pound or it can be used to make honey drop candies. Each package of candies contains three-quarters of a pound of honey and can be sold for $4.40. In addition to the cost of the honey, making and selling each container of candies incurs additional variable costs of $1.10 per unit. The monthly fixed costs associated with making the candies include: 01:19:02 eBook Master candy-maker's salary Depreciation of candy-making equipment Salary of salesperson dedicated to this product Total fixed costs $4,100 400 2,000 $6,500 The candy-making equipment does not wear out through use and it has no resale value. Assuming the company makes and sells 8,000 containers of candy, what is the financial advantage (disadvantage) of continuing to process raw honey into candies