Han Products manufactures 60,000 units of part 6 each year for use on its production line. At this level of activity, th

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Han Products Manufactures 60 000 Units Of Part 6 Each Year For Use On Its Production Line At This Level Of Activity Th 1 (27.67 KiB) Viewed 23 times

Han Products manufactures 60,000 units of part 6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 is as follows Direct materials Direct Labour Variable overhead Fixed overhead Total cost per part $6.50 12.50 5.50 10.1 $35.0 An outside supplier has offered to sell 53,000 units of part 5-6 each year to Han Products for $3100 per part of Man Products accepts this offer the facilities now being used to manufacture part 5-6 could be rented to another company at an annual rental of 5108,000 However, Han Products has determined that 30% of the forced overhead being applied to part so we be avoided if part 6 purchased from the outside supplier Required: 1. What is the net doltar advantage or disadvantage of accepting the outside suppliers offer? (Round "Total costs and final answer to the nearest whole dollar amount) 2. What is the annual rental value at which the company will be indifferent between the two options? (Round "Total costs and final answer to the nearest whole dollar amount)