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Recher Corpotasion uses part C89 in one of its products. The company's Accounting Department reports the following costs of producing the 8,100 units of the

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Recher Corpotasion uses part C89 in one of its products. The company's Accounting Department reports the following costs of producing the 8,100 units of the part that are needed every year. An outside suppliet has offered to make the part and sell it to the company for $23,00 each if this offer is accepted, the supervisor's salary and all of the verbbie costs, including arect labor, can be avoided. The speclal equipment used to muke the part was purchased many years ago and has no salvage value or cether use. The allocated general ovechesd reprecents ficed cotss of the entre company if the ouside supplets offer were accepted, only $3700 of these allocated general overthead costs would be avoided in adetian, the space used to produce part Co9 could be used to make moce of one of the companys ocher products, generating an additional segment margin of $16,500 per year for that product Fiequired: a What is the financial advanage (disadventage) of atcepting the outside suppliers offer? b. Should the company make of buy CB9

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