Please verify if this is correct. Make the appropriate adjustments where needed. Weston Corporation makes 20,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows:
	Direct Materials	$24.70
	Direct Labour	16.30
	Variable overhead	2.30
	Fixed overhead	13.40
	Total cost per unit	$56.70
An outside supplier has offered to sell the company all of these parts it needs for $51.80 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $44,000 per year. If the part were purchased from the outside supplier, all of the direct labour cost of the part would be avoided. However, $5.10 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products.
Required:
a. How much of the unit product cost of $56.70 is relevant in the decision of whether to make or buy the part? (4 marks)
	Direct material	24.7
	Labour material	16.3
	Fixed manufacturing overhead	8.3
	Variable Manufacturing overhead	2.3
	Manufacturing cost	51.6
b. What is the net total dollar advantage (disadvantage) of purchasing the part rather than making it? (3 marks)
	manuf. Cost savings	10,320,000		previous cost savings = 51.8 x 20,000
	additional con. Margin	44,000		manufacturing cost savings = 51.60 x 20,000
	previous cost saving	-10,360,000
	Total net dollar advantage	4,000		10,364,000	4,000
				10,360,000
c. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 20,000 units required each year? (3 marks)
	manuf. Cost savings	10,320,000
	additional con. Margin	44,000
	units supplied	20,000
	price per unit	53..8