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

Direct materials	$	3.90
Direct labor		5.00
Variable manufacturing overhead		3.90
Fixed manufacturing overhead		9.00
Total cost per part	$	21.80

An outside supplier has offered to sell 20,000 units of part S-6 each year to Han Products for $45.00 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $593,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier.

Han Products manufactures 20,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.90 5.00 3.90 9.00 21.80 An outside supplier has offered to sell 20,000 units of part S-6 each year to Han Products for $45.00 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $593,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier Required 1. Calculate the per unit and total relevant cost for buying and making the product. (Round your "per unit" answers to 2 decimal places.) Per Unit Differential Buy $ 45.00 20,000 Units Costs Make Make Buy $ 900,000 Cost of purchasing Cost of making Direct materials Direct labor Variable overhead Fixed overhead 3.90 5.00 3.90 9.00 78,000 00,000 78,000 180,000 Total cost $ 21.80 45.00 436,000 900,000