Southampton Corporation manufactures part M40 and use it in one of its products. The company reports the following costs of producing the 3,000 units of the part: An outside supplier has offered to make the part and sell it to the company for $60.00 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 use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer was accepted. $8.000 of these allocated general overhead costs would be unavoidable. In addition, the space used to produce part M40 could be used to make more of one of the company's other products, generating an additional segment margin of $5,000 per year for that product. 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 Required: to buy it from an outside supplier? And why? (2.25 Marks) b. Assume that Southampton Corporation requires additional equipment that costs $5,000 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 disadvantages of making the part? (0.25 Marks