Hayley Company makes a semi-finished car parts for the automobile industry that has a unit contribution margin of $125 to Miramax. A major customer, Sophie Car Parts, has been purchasing 45 units per month from Hayley for many years, but has indicated that it would prefer to purchase them already machined to its specifications. Sophie has offered to pay an additional $25 per unit for the finished units. To meet those specifications, Hayley would have to rent additional equipment at a cost of $900 per month and incur labor and other direct costs of $8 per unit. Calculate advantage or disadvantage in a month of further processing for Hayley.

Select one:

a. $135 disadvantage

b. $135 advantage

c. $450 advantage

d. $315 advantage