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Han Products manufactures 23,000 units of part S-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 23,000 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: $ 4.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part 18.00 $ 30 80 An outside supplier has offered to sell 23,000 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 5-6 could be rented to another company at an annual rental of $591,600. 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 Costs Make Buy 23,000 Units Make Buy Cost of purchasing Cost of making Direct materials Direct labor Variable overhead Forced overhead Total cost $ 0.00 $ 0.00 0 . 0 2. How much will profits increase or decrease if the outside supplier's offer is accepted? Profit would

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