Assume that a company manufactures numerous component parts, one of which is called Part A The company makes 50000 Part per year and its absorption costing system indicates that at this volume of production, it costs $23.00 per unit to make this part $ 10.00 6.00 2.00 5.00 $ 23.00 Direct materials Direct labor Variable overhead Fixed overhead Total absorption cost per unit The company is trying to decide between two alternatives: Alternative 1: Continue making 50,000 units of Part A annually using its existing equipment at the unit cost shown above. The equipment used to make this part does not wear out through use and it has no resale value. Alternative 2: Purchase 50,000 units of Part A from a supplier at a cost of $18.96 per unit. if the company chooses alternative 2, it believes that $180,000 of the fixed manufacturing overhead cost being allocated to Part A will Continue to be incurred. What is the financial advantage or (disadvantage) of buying the parts from a supplier? Multiple Choice Multiple Choice $22.000 ${22,000) $130,000 $(130,000) Assume a company manufactures many products, one of which normally sells for $48 per unit. The company's accounting stemreports the following unit product cost for this product: Direct materials Direct labor Manufacturing overhead Total cost Per Unit $ 18 12 10 $ 40 The company estimates that $3 of its manufacturing 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 $600 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) $900 O $300 O $(1,800)