Check Mcfarlain Corporation is presently making part 198 that is used in one of its products. A total of 23,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $ 4.70 $ 4.30 $ 1.80 $ 5.20 $ 5.20 $ 5.60 An outside supplier has offered to produce and sell the part to the company for $23.40 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition to the facts given above, assume that the space used to produce part 198 could be used to make more of one of the company's other products, generatina an additional seament marain of $96.400 per vear for that product. What would be the Check my word 3. An outside supplier has offered to produce and sell the part to the company for $23.40 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition to the facts given above, assume that the space used to produce part 198 could be used to make more of one of the company's other products, generating an additional segment margin of $96,400 per year for that product. What would be the financial advantage (disadvantage) of buying part 198 from the outside supplier and using the freed space to make more of the other product? ok ht nces Multiple Choice ($73,800) O O ($2,500) ces $96,400 O O ($195,300)