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: $11 Variable manufacturing costs Fixed manufacturing costs Unit product cost Instead of making the compressors, Vance can purchase them from an outside supplier for $14.50 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: a. ($7,000) b. $35,000 C. $7,000 d. ($21,000) Sometimes Corporation makes one product. Budgeted unit sales for the next four months are given below: September 105,000 October 108,000 November 110,000 December 112,000 Budgeted unit sales The ending finished goods inventory equals 25% of the following month's sales. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 2 grams of raw materials. The raw materials cost $5.00 per gram. How many grams of raw materials should Sometimes plan to purchase for October? a. 217,400 grams b. 216,400 grams c. 217,000 grams d. 216,000 grams e. 216,600 grams