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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 $ 525 11 25 4.25 10.05 Total cost per part $30 80 An outside supplier has offered to sell 47 500 units of part 5-6 each year to Han Products for $27.25 per pant. If Han Products accepts this offer the facilities now being used to manufacture part 5.6 could be rented to another company at an annual rental of 598.000 However. Han Products has determined that two-thirds of the foxed overhead being applied to part 5-6 would continue even if part 5-6 were purchased from the outside supplier Required: What is the nel dolar advantage of disadvantage of accepting the outside suppliers offer? (Do not round Intermediate calculations

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