the Dani corporation makes 47,000 frames to be used in the production of its hawii sunglasses. the average cost per frame at this level of activity is

direct materials: $10.60

direct labor: $9:60

variable manufacturing: $4.00

fixed manufacturing overhead: $4.95

An outside supplier recently began producing a similar frame that could be used in the hawaii sunglasses the offer price to dani corporation for this frame is $27.25

if Dani corporation decided not to make the frames there would be no other use for the productioon facilities and none of the fixed manufacturing overhead cost could be avoide. direct labor cost is a variable cost in this company.

question: the annual financial advatage (disadvantage) for dani corporationas a result of making the frames rather than buying them from the outside supplier would be:

choices:

a: 143,350

b: (89,300)

c: 232,650

d: 331,350