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This week, Jordan has been asked to gather information to support whether the company should...

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Accounting

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This week, Jordan has been asked to gather information to support whether the company should make or buy a part for use in production. QQS 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 S-6 is An outside supplier has offered to sell 30,000 units of part S-6 each year to QQS for $21 per part. If QQS 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, QQS 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. What is the financial advantage (disadvantage) of accepting the outside supplier's offer

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