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Problem 1 Relevant information Part A Seaside Corporation produces a part that is used in the manufacture of one of its products. The per unit costs associated with the production of 10,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead S 5.50 6.00 2.50 10.00 Of the fixed factory overhead costs, 45% represents managers' salaries not under any contract. The remainder represents leasing costs related to contracts enforceable for the next 5 years. Destin Company has offered to sell 10,000 units of the same part to Seaside for $18 per unit. The manager of Seaside has entertained the offer, especially given that Seaside could use the existing leased space for a profitable venture. Required Based on a financial perspective, what is the minimum value of the alternative venture that would make Destin's offer acceptable to Seaside?