Part 11 The management at Han Products is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. Han Products manufactures 30,000 units of part S6 each year for use on its production line. At this level of activity, the cost per unit for part S6 is: Direct materials $3.60 Direct labour 10.00 Variable manufacturing overhead 2.40 Fixed manufacturing overhead 9.00 Total cost per part 25.00 An outside supplier has offered to sell 30,000 units of part S-6 each year to Han Products for $21 per part. If Han Products accepts this offer, the facilities now bein used to manufacture part S 6 could be rented to another company at an annual rental of $80,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part 5-6 would continue even if part S-6 were purchased from the outside supplier Required: (a) Make a recommendation on whether S-6 should be manufactured or purchased. Support your answer with appropriate incremental analysis. (8 marks) Suggested Answer: Click or tap here to enter text. (Or, you can use the given excel document to show your work for this question.) (b) What non-financial factors should management consider in making this decision? (4 marks)