UU Michigan State Company currently makes part Wolverine99 which is used in producing one of its major products, Spartan Motors Every year Michigan State produces and uses a total of 7,000 units of this part Wolverine99. The company's accountants provide you with the following costs of producing the part Wolverine 99 at this annual level of activity. Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $3.50 $4.50 $1.90 $5.50 $5.50 $6.00 The Purdue Company, an outside supplier, has offered to produce and sell the part Wolverine99 to the Michigan State company for $25.10 each. If Michigan State accepts this offer, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. The special equipment Michigan State uses to make the Wolverine 99 part was purchased many years ago and has no salvage value or other use. You also find out in addition to the facts given above, that the space used to produce part Wolverine 99 could be used to make more of one of the company's other products. This would generate an additional segment margin of $23,200 per year for that other product. What would be the financial advantage (disadvantage) of buying part Wolverine 99 from the outside supplier, Purdue, and using the freed space to make more of the other product? waye jaisadvantage) of buying part Wolverine 99 from the outside supplier, Purdue, and using the freed space to make more of the other product? w year was Multiple Choice 10 ($44,700) ($8,300) O $23,200 ($54,700) fio33 Next >