Han Products manufactures 55,000 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:

Direct materials	$	6.00
Direct labour		12.00
Variable overhead		5.00
Fixed overhead		10.50
Total cost per part	$	33.50

An outside supplier has offered to sell 48,000 units of part S-6 each year to Han Products for $29.50 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 $104,000. 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.

What is the net dollar advantage or disadvantage of accepting the outside suppliers offer?

	A.	Net dollar disadvantage of $138,750.
	B.	Net dollar disadvantage of $34,750.
	C.	Net dollar advantage of $138,750.
	D.	Net dollar disadvantage of $242,750.
	E.	Net dollar advantage of $34,750.