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Han-3979 company manufactures 23,000 units of part T-25 each year. The company's cost per unit for part T-25 is: Direct materials Direct labor Fixed
Han-3979 company manufactures 23,000 units of part T-25 each year. The company's cost per unit for part T-25 is: Direct materials Direct labor Fixed manufacturing overhead Variable manufacturing overhead Total cost per part $ 3.70 11.00 2.30 9.00 $ 26.00 An outside supplier has offered to sell 23,000 units of part T-25 each year to Han-3979 for $22 per unit. If Han-3979 accepts this offer. it can rent out the facilities now being used to manufacture part T-25 to another company at an annual rental of $73,000. However, Han-3979 has calculated that two-thirds of the fixed manufacturing overhead being applied to part T-25 will continue even if the part is bought from the outside supplier. What is the financial advantage of accepting the outside supplier's offer? O $25,000 $29,000 O $30,000 $27,000
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