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RelyaTech Corporstion makes an extra large part to use in one its fabulous products, A total of 16,000 units of this extra large part are

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RelyaTech Corporstion makes an extra large part to use in one its fabulous products, A total of 16,000 units of this extra large part are produced and used: every year. The company's costs of producing the extra large part at this level of activity are below: (10*75838) An outside stpplier has offered to make the extra lacge part and sell it to Relyatech for $27:10 each. If this offer is accepted, the supervisors salary and all of the variable costs, including the dicect labot, can be avoided. The special equ pment used to make the extra targe part has no salvage walue or other use: The allocated peneral overhead represents fixed costs of the entire Relyalech company, none of which would be avoided if the pint were purehaned instead of produced internally. In addibon, the space used to make the extre large part could be used to make more of one of the companys other fabulous O) What would be the annual financial advantage (disadvantage) for RelyaTech Corp. as a cesult of buying the enctra large part from the outside supplief? Muisisle Chouce tita:400) The allocated general overhead represents fixed costs of the entire RelyaTech company, none of which would be avoided if the part were purchased insta of produced internally in addition, the space used to make the extra latge part could be used to make more of one of the company s other fabutous products, generating an additional segment margin of $28,000 per year for that product. Q) What would be the annual financial advantage (disadvantage) for Relyafech Corp. as a result of buying the extra large part from the outside supplier? Multiple Chaice 5(08,400) (\$136,000) (57),400) $28000

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