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Han Products manufactures 33,000 units of part s-6 each year for use on its production line. At this level of activity, the cost per unit
Han Products manufactures 33,000 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 Direct labor variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.70 10.00 2.30 12.00 $ 28.00 has offered to sell 33,000 units of part S-6 each year to Han Products for $22 per part If Han Products accepts g used to manufacture part S-6 could be rented to another company at an annual rental of $83,000. this offer, the facilities now being manufacture p However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part even if part S-6 were purchased from the outside supplier. S-6 would continue Required: What is the financial advantage (disadvantage) of accepting the outside suppliers offer? Financial svantg
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