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Exercise 11-11 Make or Buy Decision (LO11-3] Han Products manufactures 37,000 units of part 5-6 each year for use on its production line. At this

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Exercise 11-11 Make or Buy Decision (LO11-3] Han Products manufactures 37,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: 2.0 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part An outside supplier has offered to sell 37000 units of part 5-6 each year to Han Products for $19 per part. If Han Products accepts this offer, the facilities now being used to manufacture part 5-6 could be rented to another company at an annual rental of $87.000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part 5-6 would continue even if part 5-6 were purchased from the outside supplier Required: What is the financial advantage (disadvantage of accepting the outside supplier's offer

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