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Canadian Products Limited manufactures 37.500 units of part Bin730 each year for use on its production line. At this level of activity the cost per

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Canadian Products Limited manufactures 37.500 units of part Bin730 each year for use on its production line. At this level of activity the cost per unit for part Bin730 is as follows Direct materials Direct labour Variable overhead Fixed overhead Total cost per part 54.25 10.25 3.25 9.45 $27.20 An outside supplier has offered to sell 33.000 units of part Bin730 each year to Canadian Products for $24.25 per part of Canadian Products accepts this offer, the facilities now being used to manufacture part Bin730 could be rented to another company at an annual rental of $90.000. However, Canadian Products has determined that 30% of the fixed overhead being appiled to part Bin730 will be avoided if part Bin730s purchased from the outside suppler Required: 1 What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? (Round Total costs and final answer to the nearest whole dollar amount) 2. What is the annual rental value at which the company will be in Merent between the two option (Round Total costs and final answer to the nearest whole collat amount Annual rental value

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