Question 1 5 points Save Antwe Golden Company uses part M15 in one of its products. The company's Accounting Department reports the following costs of producing the 10,600 units of the part that are needed every year Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $6.50 $5.10 $7.00 $5.70 $4.50 $350 An outside supplier has offered to make the part and sell it to the company for $20.50 each. If this offer is accepted, the supervisor's salary can be avoided The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents foxed costs of the entire company If the outside supplier's offer was accepted, $2.500 of these allocated general overhead costs would unavoidable. In addition, the space used to produce part 15 could be used to make more of one of the company's other products, generating an additional segment margin of $11.400 per year for that product Required: 5. What is the financin advantage (disadvantages of accepting the outside suppliers offer? Would Golden Company be financially better on to continue making part 15 or to buy it from an outside supplier? And why? b. Assume that Golden Company requires additional equipment that costs $35,000 to make part 15. As a result, the direct labor cost decrease by $1.30 Would Golden Company be financially better off to continue making part 15 octo Duy it from an outside supplier And why ENG COM 1/15/2002