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Han-9855 company manufactures 34,000 units of part T-25 each year. The company's cost per unit for part T-25 is: Direct materials Direct labor Variable
Han-9855 company manufactures 34,000 units of part T-25 each year. The company's cost per unit for part T-25 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.80 11.00 2.20 6.00 $23.00 An outside supplier has offered to sell 34,000 units of part T-25 each year to Han-9855 for $21 per unit. If Han-9855 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 $84,000. However, Han-9855 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 $19,000 O $16,000 $18,000 O $14,000
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