BUACC5933 Cost and Management Accounting Semester 1 2020 Han Products manufactures 30,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S6 is Direct materials $3.60 Direct labour 10.00 Variable manufacturing overhead 2.40 Fixed manufacturing overhead 9.00 Total cost per part 25.00 An outside supplier has offered to sell 30,000 units of part 5-6 each year to Han Products for $21 per part If Han Products accepts this offer, the facilities now being used to manufacture part 5-6 could be rented to another company at an annual rental of $80,000. However. Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part 5-6 were purchased from the outside supplier Required: (a) Make a recommendation on whether S-6 should be manufactured or purchased Support your answer with appropriate incremental analysis (8 marks) Suggested Answer: Click or tap here to entertext (Or you can use the given excel document to show your work for this question) (b) What non-financial factors should management consider in making this decision? (4 marks) Suggested