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 as follows:

An outside supplier has offered to sell $31,000$ units of part S$-6$ each year to Han Products for $$23\mathrm{.}50$ 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 $$88,000.$

However, Han Products has determined that $30\%$ of the fixed overhead being applied to part S$-6$ will be avoided if part S$-6$ is

purchased from the outside supplier.

Required:

What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? $($Round "Total costs" and final answer to

the nearest whole dollar amount.$)$

What is the annual rental value at which the company will be indifferent between the two options? $($Round "Total costs" and final

answer to the nearest whole dollar amount.$)$