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for part 5-6 is Sur part each year for use on its production line. At this level of activity, the cost per unit Direct materials
for part 5-6 is Sur part each year for use on its production line. At this level of activity, the cost per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.80 12.00 2.20 12.00 $ 30,00 5140 An outside supplier has offered to sell 24.000 units of parts 6 each year to Han Products for $24 per parti 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 $74,000 However. Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part 5-6 would continue even part 5-6 were purchased from the outside supplies Required: What is the financial advantage disadvantage of accepting the outside supplier's offer
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