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Han Products manufactures 65,000 units of part S-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 65,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 is as follows: Direct materials Direct labour Variable overhead Fixed overhead $ 7.00 13.00 6.00 11.10 Total cost per part $37.10 An outside supplier has offered to sell 65,000 units of part S-6 each year to Han Products for $32.50 per part. 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 $112,000. However. Han Products has determined that two-thirds of the fixed overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? (Do not round intermediate calculations) T Net dollar advantage Net dollar disadvantage

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