D. E. $3,600 favorable None of the above 57750 Part SS4 is used in one of The Turtle Corporation's products. The company makes part each year. The company's Accounting Department reports the follo Corporation's products. The company makes 12.000 units of this uing Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 6.30 Direct labor $ 5.70 Variable overhead $ 4.80 Fixed Costs: Supervisor's salary $ 7.00 Depreciation of special equipment $ 8.60 Common fixed overhead $ 7.20 An outside supplier has offered to produce this part and sell it to the company for $37.70 each. If offer is accepted, the supervisor will be fired. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. If the outside supplier's one wa accepted, common fixed costs would be reduced by $17,000. The annual financial advantage (disadvantage) for the company as a result of buying the part from the outside supplier would be: A) ($5,800) B) ($22,800) C) ($149,800) D) ($39,800) Refer to the previous question. Now assume that the facilities that had been used to produce part S54 could be used for something else if 854 parts are purchased from an outside supplier. If this is true, would you be more likely or less likely to outsource S54 to the outside contractor? More Likely B. Less Likely 3