Exercise 11-11 Make or Buy Decision [L011-3] Han Products manufactures 31,000 unts 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: Direct naterials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.50 8.00 2.50 5.00 $20.00 An outside supplier has offered to sell 31,000 units of part S-6 each year to Han Products for $18 per part. It 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 $81,000. 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 Required What is the financial advantage (disadvantage) of accepting the outside supplier's ofter? advantage