Hw 13 question 4

Han Products manufactures 20.000 units of part S-6 each year for use on its production iline. At this level of activity, the cost per unit for-part 56 is: An outside supplier has offered to sell 20,000 units of parts 6 each year to Han Products for $19 per part. If Han Products accepts this offer, the facilitles now being used to manufacture part $6 could be rented to another company ot an annual rental of $70.000. However, Han Products has determined that two thirds of the fixed manufacturing overhedd being applied to part 5.6 would continue: even if part $6 were purchased from the outside supplier. Required: What is the financial advantage (disudvantage) of accepting the outside supplier's offer