B. $(40,000)C. $150,000D. $75,000

Assume a company is considering buying 10,000 units of a component part rather than making them. A supplier has agreed to sell the company 10,000 units for a price of $41.50 per unit. The company's accounting system reports the following costs of making the part: Per 10, 000 Units Unit per Year Direct materials $ 16 $ 160, 090 Direct labor 120, 000 Variable manufacturing overhead 20, 000 Fixed manufacturing overhead, traceable 80, 000 Fixed manufacturing overhead, allocated + 40, 000 Total cost $ 42 $ 420, 000 One-half of the traceable fixed manufacturing overhead relates to supervisory salaries and the remainder relates to depreciation of equipment with no salvage value. If the company chooses to buy this component part from a supplier, then the supervisor who oversees its production would be discharged. What is the financial advantage (disadvantage) of buying 10,000 units from the supplier? Multiple Choice O $ (75,000 )