Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 15,200 units of the part that are needed every year. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $ 2.10 $ 3.10 $ 5.90 $ 6.40 $ 7.50 $ 4.60 An outside supplier has offered to make the part and sell it to the company for $26.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $21,200 of these allocated general overhead costs would be avoided. Required: a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make It Inside the company. b. Which alternative should the company choose? Required A Required B Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Outside purchase price Total cost Make Buy The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below. Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $ 740,700 $ 384,800 $ 252,000 $ 215,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further Investigation has revealed that $178,000 of the fixed manufacturing expenses and $154,300 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping B90D? Should the product be dropped?