Han Products manufactures 2 3 , 0 0 0 units of part S - 6 each year
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Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/6663b7f66ce06_1896663b7f5d6faa.jpg)
Han Products manufactures units of part S each year for use on its production line. At this level of activity, the cost per unit
for part S is:
An outside supplier has offered to sell units of part S each year to Han Products for $ per part. If Han Products accepts
this offer, the facilities now being used to manufacture part S could be rented to another company at an annual rental of $
However, Han Products has determined that twothirds of the fixed manufacturing overhead being applied to part S would continue
even if part S were purchased from the outside supplier.
Required:
What is the financial impact of accepting the outside supplier's offer? Indicate negative cash flows with a negative sign.See below
for hints if you need them.
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/6663b7f69f6ed_1906663b7f699e53.jpg)
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