TB Problem Qu. 12-185 Foto Company makes ... Foto Company makes 11,000 units per year of a part It uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials Direct labor Variable manufacturing overhead Tixed manufacturing overhead Unit product coat $13.10 20.70 2.90 10.00 $47.50 An outside supplier has offered to sell the company all of these parts it needs for $42.20 a unit. If the company accepts this offer the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $49,500 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $5.30 of the Txed manufacturing overhead cost being applied to the part would continue even if the port were purchased from the outside supplier This flued manufacturing overhead cost would be applied to the company's remaining products. Required: a. How much of the unit product cost of $47.50 is relevant in the decision of whether to make or buy the part? (Round "Per Unit" to 2 decimal places.) b. What is the financial advantage (disadvantage of purchasing the part rather than making it? c. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 11.000 units required each year? (Round "Per Unit" to 2 decimal places.) Relevant manufacturing cool por unut Maximum comptable purchase price porn