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Question 35 3 pts Tucker Corporation makes 8,000 units of part 275 each year. This part is used in one of the company's products. The
Question 35 3 pts Tucker Corporation makes 8,000 units of part 275 each year. This part is used in one of the company's products. The company's Accounting Department reports the following costs of produc rtment reports the following costs of producing the part at this level of activity: Direct materials Direct labor Variable manufacturing overhead Traceable supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $6.70 $8.10 $1.10 $2.00 $4.20 $2.10 An outside supplier has offered to make and sell the part to the company for $21.20 each. 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 $2,000 of these allocated general overhead costs would be avoided. In addition, the space used to produce part Q75 would be used to make more of one of the company's other products, generating an additional margin of $16,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part Q75 from the outside supplier is
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