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M U LTI. U oumen... My Drive - Google... U1M3 Assignment.. Han Products manufactures 60,000 units of part 5-6 each year for use on its
M U LTI. U oumen... My Drive - Google... U1M3 Assignment.. Han Products manufactures 60,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials Direct labour Variable overhead Fixed overhead $ 6.50 12.50 5.50 10.80 Total cost per part $35.30 An outside supplier has offered to sell 60,000 units of part S-6 each year to Han Products for $31.00 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $100.000. However, Han Products has determined that two-thirds of the fixed overhead being applied to part 5-6 would continue even if part S 6 were purchased from the outside supplier. Required: What is the not dolor advantage or disadvantage of accepting the outside supplier's offer? (Do not round Intermediate calculations) Net dollar advantage Net dollar disadvantage
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