SECOND SEMESTER (2019 2020) HEALTH MANAGEMENT PROGRAM ACCOUNTING FOR HEALTH FACILITIES HSAE607 Name... Critical Thinking: Part 88 is used in one an artificial human part of Queen Company. The company makes 3.000 units of this part cach year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Domicis. Direct labor ........ Variable wi . th Twittf at Ald en erhead An outside supplier has offered to produce this part and sell it to the company for $32.10 cach. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. 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 $3,000 of these allocated general overhead costs would be avoided. If management decides to buy part 288 from the outside supplier rather than to continue making the part, what would be the annual impact on the company's overall net operating income? Relevant Cost Annual Impact in Company's Net Income