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Hain Products manufactutes 25,000 units of part 56 each year for use on its productlon line. At this level of activity. the cost per unit

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Hain Products manufactutes 25,000 units of part 56 each year for use on its productlon line. At this level of activity. the cost per unit for part S-6 is as followis: An outside supplier has offered to sell 23.000 units of part 5.6 each year to Han Products for $20.50 per part. If Han Products: actepts this offer. the facilities now being used to manufacture part 56 could be rented to another company at an annual rental of $80.000. However. Han Products has determined that 3006 of the fixed overhedi being applied to part 5.6 will be avoided if pait 5 - 6 is purchased from the outside supplier. Required: What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? (Round "Total costs" and finol answer to he nearest whole dollor amount.) 2. What is the annual rental value at which the company will be indifferent between the two options? (Round "Total costs" and final answer to the nearest whole dollar amount.)

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