Exercise 11-11 Make or Buy Decision [LO11-3 Han Products manufactures 20,000 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 3.40 2.60 8 23.00 Direet saterials Direct Labor Variable manufacturing overhead rixed mavafacturing overhend Total eoat per part An outside supplier has offered to sell 20,000 units of part S-6 each year to Han Products for $19 per part. If Han Products accepts this offer the faclities now being used to manufacture part S-6 could be rented to another company at an annual rental of $70.,000 sHowever, 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 What is the financial advantage (disadvantage) of accepting the outside supplier's offer? nancial advantage 6 WE