Han-5359 company manufactures 35,000 units of part T-25 each year. The company's cost per unit for part T-25 is:

Direct materials$ 3.90Direct labor12.00Variable manufacturing overhead2.10Fixed manufacturing overhead9.00Total cost per part$ 27.00

An outside supplier has offered to sell 35,000 units of part T-25 each year to Han-5359 for $23 per unit. If Han-5359 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 $85,000. However, Han-5359 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 suppliers offer?

multiple choice

$15,000

$18,000

$13,000

$17,000