Southampton Corporation mamufactures part M40 and use it in one of its products. The company reports the following costs of producing the S, ooo units of the part An outside supplier has offered to make the part and sell it to the company for $50.00 each. If this offer is accepted, two-third of the electricity of the factory can be avoided. The special tool used to make the part was purchased many years ago and has no salvage value or other bie. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offet was accepted 51 .000 of theso allocated getaeral overhead costs would be unavoidable. In addition, the opace used to produce past M40 cotald be used to make more of one of the company's other products, generating an additional segment margin of 515,000 per year for that product Requiredif a. What is the financial advantage (disadvantage) of accepting the outside supplier's offer? Would Southampton Corporation be financially better off to continue making part M40 or to buy it from an outside supplier? And why? (2 25 Marks) b. Assume that Southampton Corporation requires additional equipment that costs $4,000 to make part M40. As a result, the direct labor cost will decrease by $4.00 per unit. What is the financial advantage (disadvantage) of accepting the outside supplier's offer? (2? 25 Marks) c. Based on your calculation in requirements (a) and (b), which case would be better off for Southampton Corporation? ( 0 25 Marks) d. If Southampton Corporation decided to make part M40, what would be the advantages of making the part? (O.26 Marks)