Sonic Company makes video game consoles. Currently, Sonic makes all components for its consoles in-house. An outside company has offered to supply one component, part M37, for $38 each. Sonic uses 37,000 of these components per year. Costs of M37 are as follows: $13.00 $11.50 $12.75 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $15.00 If 40% of fixed overhead is avoidable when M37 is outsourced, then what is the financial advantage or disadvantage of buying M37 from the outside supplier? Financial advantage of $27.750 Financial advantage of $194,250 O Financial disadvantage of $27,750 Financial disadvantage of $194,250 None of the above