Award 5 out of 10.00 points Han Products manufactures 57 500 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: $ 6.25 12.25 Direct materials Direct labour Variable overhead Fixed overhead 10.65 Total cost per part $34.40 An outside supplier has offered to sell 57 500 units of part 5-6 each year to Han Products for $30.25 per part. If Han Products accepts this offer, the facilities now being used to manufacture part 5-6 could be Tented to another company at an annual rental of $106,000. However. Han Products has determined that two-thirds of the fixed overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? (Do not round intermediate calculations) Net dollar disadvantage 48,000 Sales Less: Variable expenses 1,576.750 Contribution margir Less Fixed expenses: Nages Insurance on inventory Advertising $1,071,000 59,500 654,500 1.785,000 $ (208,250) Net operating income foss) Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of $89,250 Required: Calculate the increase or decrease in the operating income in both alternatives. Drop Accesories Product Line Sales Keep Accesories Product Line $ 3,050,000 1.433 500 $ 1616,500 Less: Variable expenses Contribution margin Fixed expenses Leser Wages expenses Hii Less Insurance on inventory 91.500 1 098,000 61 doo 671 bod Les Advertising expenses 1.830.000 11218500 HT 823 500 Sul 793.000 Net operating ngome VORS)