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Plainfield Company manufactures part G for use in its production cycle. The full cost per unit for each of 10,000 units of part G manufactured

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Plainfield Company manufactures part G for use in its production cycle. The full cost per unit for each of 10,000 units of part G manufactured per year by Plainfield are as follows: Verona Company has offered to sell Plainfield 10,000 units of part G for $15 per unit If Plainfield accepts Verona's offer, the released facilities could be used to save $35,000 in relevant costs in the manufacture of part H. In addition. $4 per unit of the flxed overhead applied to part G would be eliminated. Based solely on a short-term financial analysis, which alternative is more desirable and by what amount

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