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Having some trouble with this question Han Products manufactures 34,000 units of part 5.5 each year for use on its production line. At this iovel
Having some trouble with this question
Han Products manufactures 34,000 units of part 5.5 each year for use on its production line. At this iovel of octivity. The cost per unit for pert $.6 in: An outside supplier has offered to sell 34,000 units of part $6 each year to Han Products for $21 per part II Han Products accepts this affec, the focilites now being used to munufacture part S. 6 could be rented to onother company for $84,000 per yeat. However, Han Products determined two-thirds of the fored manufacturina overhead being applied to part s. 6 would continue even if part 5.6 were burchased from the outside suppliet. Required: What is the financal advantage (desadvantage) of occepting the outside supplier's offer Step by Step Solution
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