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us Question (5 Points) ABC Company produces a part used in the manufacturing on one of its oducts. The unit product cost is $26, computed as follows: $10 Direct materials Direct labor...... Variable manufacturing overhead....... Fixed manufacturing overhead... Unit product cost. $26 An outside supplier has offered to provide the annual requirement of 5,000 of the parts for $21 each. The company estimates that 75% of the fixed manufacturing overhead cost can be eliminated if the outside supplier provides the parts. Based upon the date provided should the ABC Company accept the offer? What is the cost savings or cost disadvantage of accepting the offer? Ans: Accept or Reject (circle your choice) Cost Savings or Disadvantage