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Penagos Corporation is presenty mokang pert 243 that is used in...

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Accounting

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Penagos Corporation is presenty mokang pert 243 that is used in one of its products. A fotal of 5,000 units of this port are produced and used every year The componys Accounting Dopartment repoits the following costs of producing the part at this level of activity? An outbite subplier has offered to produce and sell the part to the conpory for $2080 each if this ofer s accepted, the supervisory salary and all of the variablo costs. including direct labor, can be avoided The speciel equipient used to make the part was purchased mony years ago and hos no satvage value or other use. The allocited generai ovemead ieprasents fixed costs of the entire compony de the outside suppher's offer were accepted, only $4,000 of these alocated general owehend costs woild be wroided I management decides 10 bry nat 743 from the outside supphet tather than to contmue making the part, what would be the annus financiat advantage (disadvantagel? Nunole Crioce (5) 400 i (5) 05000

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