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Save & E Die Corporation manufactures a variety of parts for use in its product. The company has wys produced all of the necessary parts

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Save & E Die Corporation manufactures a variety of parts for use in its product. The company has wys produced all of the necessary parts for product including all of the election circuits. The company sells 15.000 units of its product per year An outside supplier has offered to se electronic circuits to the company for a cost of $40 perut to this offer the company has gathered the following information relating to its own cost of producing the electronic circuits internally Direct materials Direct labor Variable sanufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 15,000 Units Per per Unit Year $15 $225,000 11 165,000 30,000 * 135,000 12 180.000 $49 5735,000 "One third supervisory salary, two-thirds depreciation of special equipment (no resale value Suppose that if the electronic crcuits were purchased the division supervisor position could be eliminated and manufacturing overhead will be allocated to other products made by the company Also, the company could use the freed production capacity to launch a new product. The segment margin of the new product would be $150,000 per year this was on how much would be the financial advantage of buying 15,000 electronic circuits from the outside supplier? Multiple Choice 5035.000 $30.000 $35,000 595.000

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