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Han Products manufactures 47,500 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit

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Han Products manufactures 47,500 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials Direct labour Variable overhead Fixed overhead Total cost per part $5.25 11.25 4.25 10.05 $30. Jook int elences An outside supplier has offered to sell 41500 units of parts 6 each year to Han Products for $27.25 per part. If Hon Products accepts this offer the facilities now being used to manufacturepart S6 could be rented to another company at an annual rental of $98.000. However . Han Products has determined that 30% of the fixed overhead being applied to parts will be avoided if parts6ls purchased from the outside supplier Required: 1. 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.) et dolor advantage

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