Exercise 11-11 Make or Buy Decision [LO11-3] Han Products manufactures 23,000 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 Direct materials 3.70 11.00 2.30 Direct labor Variable manufacturing overhead Fixed manufacturing overhead 9.00 $26.00 Total cost per part An outside supplier has offered to sell 23,000 units of part S-6 each year to Han Products for $22 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 $73,000 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 offer? Financial advantage