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Garrido Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of 11,000 units

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Garrido Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of 11,000 units of this part are as follows: Of the fixed factory overhead costs, $9,000 is avoidable. Required: a. Assuming there is no alternative use for the facilities, should Garrido Company take advantage of an offer from a supplier who is willing to sell Garrido Company 11,000 units of the same part for $12.50 per unit? b. Would your answer to Part A change if the facilities could be rented for $10,000 a year

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