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Han Products manufactures 25 000 units of part 6 each year for use on production A v ec h e cost per part 6 Orect
Han Products manufactures 25 000 units of part 6 each year for use on production A v ec h e cost per part 6 Orect materials Direct babe Variable manufacturing overhead Fixed manufacturing overhead Total cost per part 12.00 An outside supplier has offered to sell 25.000 units of parts 6 each year to Han Products for $4500 per part Han Products accepts this offer the tadas now being used to manufacture part S6 could be rented to another company at an annual rental of 5632.500 However Han Products has determined that two-thirds of the feed manufacturing overhead being applied to parts would continue even if part 5-6 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 25,000 units Cost of purchasing Cast of making Direct materiais Direct labor Variable overhead Fored overhead Total cost $ 0.00 3 000 0 2. How much will profits increase or decrease the outside supplier's offer is accepted Profit would Type here to search
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