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Han Products manufactures 22,000 units of part 56 each year for use on its production line At this level of activity, the cost per unit

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Han Products manufactures 22,000 units of part 56 each year for use on its production line At this level of activity, the cost per unit for part 8-6 is: Direct materials $ 3.60 Direct labor 10.00 Variable manufacturing overhead 2.40 Fixed manufacturing overhead 6.00 Total cost per part $ 22-00 An outside supplier has offered to sell 22,000 units of part 5-6 each year to Han Products for $20 per part If 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 $72,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part 5-6 would continue even if part 5-6 were purchased from the outside supplier. Required: What is the financial impact of accepting the outside supplier's offer? (Indicate negative cash ows with a negative sign.) (See below for hints if you need them.) Financial advantage _

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