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Han Products manufactures 30,000 units of part S-6 each year for...

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Accounting

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Han Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part 56 is: An outside supplier has offered to sell 30,000 units of part S.6 each year to Han Products for $21 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S. 6 could be rented to another company at an annual rental of $80.000. However. Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S.-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer

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