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Han Products manufactures 20,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit

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Han Products manufactures 20,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 ls Direct materials Direct labor Variable facturing overhead Fixed tacturing overhead Total cost per part 3.40 0.00 2.60 9.00 5 23.00 An outside supplier has offered to sell 20,000 units of part 5-6 each year to Han Products for $19 per part I 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 $70,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part 5-5 would continue even if part 5-6 were purchased from the outside supplier Required: What is the financial advantage disadvantage) of accepting the outside supplier's offer

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