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Check my work 3. Exercise 12-11 Make or Buy Decision (LO12-3] Han Products manufactures 29,000 units of part S-6 each year for use on its
Check my work 3. Exercise 12-11 Make or Buy Decision (LO12-3] Han Products manufactures 29,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: 1.66 points 00:32:55 $ 3.70 Direct materials Direct labor 12.00 Variable manufacturing overhead Fixed manufacturing overhead 2.30 9.00 $ 27.00 Total cost per part eBook An outside supplier has offered to sell 29,000 units of part S-6 each year to Han Products for $23 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $79,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S- 6 would continue even if part S-6 were purchased from the outside supplier. Print References Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer
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