Multiple Choice $35,000 $20,000 $(20,000) $(35,000)

Assume company Is conslderlng uslng avellable space to make 10,000 unlts of component part It hos been Ouylng from suppllerfor a prlce of $40.50 per unlt The company's accountlng system estlmetes the followlng costs of maklng the pert: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost per Unit 19 47 l,aa Units per Year $ Iga,e 12a,e 2a,e $ 45a,e One-half ofthe traceable fixed manufacturlng overhead relates to a supervlsorlhot would heve to Oe hlred to oversee productlon oflhe part. The remalnder oflhe traceable fixed manufacturlng overhead relates to depreclotlon of equlpment that the company already owns Th's equlpment hes 20.000 unlts of unused copoclty, no resale value, and II does weer out through use. The elloced fixed manufacturlng overhead relates to general overhead costs. such as the plant manager's salary, Ilghtlng, heellng and coollng costs. and plant Insurance costs. What Is the financlal advantage (dlsadvantege) of maklng 10,000 unlts Instead of buylng them from the suppller? Multlple Cholce o o no. ooo 3135.000)