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Han Products manufactures 25,000 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 25,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part 56ls : An outside suppller has offered to sell 25,000 units of part S. 6 each year to Han Products for $18 per part. If Han Products accepts this olfer, the facbities now being used to manufacture part S-6 could be rented to another company at an annual rental of $75,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applled to part S-6 would continue even if part S. 6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer? Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer

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