Han Products manufactures $35,000$ 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 $ $3\mathrm{.}90$

Direct labor $12\mathrm{.}00$

Variable manufacturing overhead $2\mathrm{.}10$

Fixed manufacturing overhead $9\mathrm{.}00$

Total cost per part $ $27\mathrm{.}00$

An outside supplier has offered to sell $35,000$ units of part S$-6$ each year to Han Products for $$23$ per part. If Han Products accepts this offer, the facilities now being used to manufacture part S$-6$ could be rented to another company at an annual rental of $$85,000.$ 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.