profit would __________________ by ___________

Han Products manufactures 24,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 is: $ 5.20 7.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 4.10 12.00 Total cost per part $28.30 An outside supplier has offered to sell 24,000 units of part S-6 each year to Han Products for $50.00 per part. If Han Products accepts this offer, the facilities now being used to manufacture part 5-6 could be rented to another company at an annual rental of $725,800. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part 5-6 were purchased from the outside supplier. a. Calculate the per unit and total relevant cost for buying and making the product? (Round your "per unit" answers to 2 decimal places.) Per Unit Differential Costs Make Buy 24,000 Units Make Buy Cost of purchasing Cost of making: Direct materials Direct labor Variable overhead Fixed overhead Total cost b. How much will profits increase or decrease if the outside supplier's offer is accepted