Han Products Manufactures 30 000 Units Of Part 5 6 Each Year For Use On Its Production Line At This Level Of Activity 1 (45.76 KiB) Viewed 58 times
Han Products Manufactures 30 000 Units Of Part 5 6 Each Year For Use On Its Production Line At This Level Of Activity 2 (45.76 KiB) Viewed 58 times
Han Products Manufactures 30 000 Units Of Part 5 6 Each Year For Use On Its Production Line At This Level Of Activity 3 (21.02 KiB) Viewed 58 times
Han Products manufactures 30,000 units of part 5-6 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 ateriais Direct labour Variable overhead Fixed overhead Total cost per part $ 3.30 9.50 2.50 . $24.50 An outside supplier has offered to sell 26,500 units of part 5-6 each year to Han Products for $2200 per part in Han 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 $84.000 However, Han Products has determined that 30% of the fed overhead being applied to par 5-6 will be avoided if part 5-65 purchased from the outside supplier Required: 1. What is the net dolor advantage of 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 nd Total costs and final answer to the nearest whole dollar amount.) Annual rental value
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