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Han Products manufactures 62,500 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 62,500 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part 5.6 is as follows: 56.25 12.25 Direct materials Direct Labour Variable overhead Fixed overhead Total cost per part 10.95 536.20 An outside supplies has offered to sell 55,000 units of part 5-6 each year to Han Products for $3175 per part i 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 $110,000 However, Han Products has determined that 30% of the fixed overhead being applied to part S6 will be avoided it part S-6 is purchased from the outside supplier Required: 1. What is the netdollar advantage or disadvantage of accepting the outside suppliers offer? (Round "Total costs and final answer to the nearest whole dollar omount) need to disadvantage 19 375

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