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Vance Refrigeration Corporation produces 14,000 compressors each year, which are used in the production of its air conditioners. The per unit product cost of this

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Vance Refrigeration Corporation produces 14,000 compressors each year, which are used in the production of its air conditioners. The per unit product cost of this compressor part is $17, computed as follows: Variable manufacturing costs $11 Fixed manufacturing costs Unit product cost Instead of making the compressors, Vance can purchase them from an outside supplier for $16 each. If they buy the compressors, all variable manufacturing costs would be avoided, and one-half of the fixed manufacturing costs would also be avoided. Based on just this information, the financial advantage (disadvantage) of buying the compressors from the outside supplier would be: .8.1570,000) 6.514,000 C-542,000 d. 1828,000)

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