Kantrovitz Corporation of Long Pond, PA uses 10 units of Part AC 306 each mont to produce its only product. The current cost to manufacture one unit of AC 306 Direct $4,000 Material Material Handling 1.200 (30% of DM) Direct Labor 16,000 Manufacturing 19.200 Overhead Total Cost $40,400 Material Handling represents the direct variable cost of the receiving department to receive materials or purchased items Manufacturing Overhead is 1/3 variable and 2/3 fixed. Fixed overhead is unavoidable. Tate Inc. has offered to supply AC 306 at a unit price of $25,000. Required: A. If Kantrovitz Corporation purchases AC 306, the capacity used to manufacture this part would be idle. Compute the change in the total cost per unit to Kantrovitz if it decided to purchase the part from Tate Inc. B. Assume that Kantrovitz is able to rent all idle capacity for $50,000 per month. If Kantrovitz decides to purchase the units from Tate, what would be the impact on the company's profits? Type here to search O BI Kantrovitz Corporation of Long Pond, PA uses 10 units of Part AC 306 each mont to produce its only product. The current cost to manufacture one unit of AC 306 Direct $4,000 Material Material Handling 1.200 (30% of DM) Direct Labor 16,000 Manufacturing 19.200 Overhead Total Cost $40,400 Material Handling represents the direct variable cost of the receiving department to receive materials or purchased items Manufacturing Overhead is 1/3 variable and 2/3 fixed. Fixed overhead is unavoidable. Tate Inc. has offered to supply AC 306 at a unit price of $25,000. Required: A. If Kantrovitz Corporation purchases AC 306, the capacity used to manufacture this part would be idle. Compute the change in the total cost per unit to Kantrovitz if it decided to purchase the part from Tate Inc. B. Assume that Kantrovitz is able to rent all idle capacity for $50,000 per month. If Kantrovitz decides to purchase the units from Tate, what would be the impact on the company's profits? Type here to search O BI