ferences Review View T Abelecida AattCeD Asad Aabbi 1 point) Fothergill Company makes 40,000 units per year of a part it uses in the penducts it manufactures. The unit product cost of this part is computed as follow Direct materials. Direct labor Unit product cost Variable manufacturing overhead... Fixed manufacturing overhead $21.40 22.30 140 24.60 $69.70 An outside supplier has offered to sell the company all of these parts it needs for $57.10 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $395,000 per year. If the part were purchased from the outside supplier, all of the direct labor, direct materials and variable manufacturing overhead costs of the part would be avoided. However, $21.90 of the fixed manufacturing overhead cost being applied o the part would continue even if the part were purchased from the outside supplier This fixed manufacturing overhead cost would be applied to the company's remaining products Required How much of the unit product cost of $69.30 is relevant in the decision of whether to make or buy the part b. What is the net total dollar advantage or advantage) of purchasing Depart other than making it toober that the facility could be used to produce different product if we purchased the parts from the eutside) What is the maximum out the company should be willing to pay an outside supplier 40.000 unit for the part if the supplier commits to supplying all pred year? 15 01 411 1 118 T A 6 Y 8 9 - 1 1010 D F G H J K 3 4 L E R 0 L < C V B N M comman