Check my work Han Products manufactures 67,500 units of part S6 each year for use on...

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Check my work Han Products manufactures 67,500 units of part S6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials Direct labour Variable overhead Fixed overhead $ 7.25 13.25 6.25 11.25 Total cost per part $38.00 An outside supplier has offered to sell 60,000 units of part S-6 each year to Han Products for $33.25 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 $114,000 However, Han Products has determined that 30% of the fixed overhead being applied to part S-6 will be avoided if part S-6 is purchased from the outside supplier. Required: 1. What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? (Round "Total costs" and final answer to the nearest whole dollar amount.) Net dollar disadvantage 73.500 Check my work Han Products manufactures 67,500 units of part S6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials Direct labour Variable overhead Fixed overhead $ 7.25 13.25 6.25 11.25 Total cost per part $38.00 An outside supplier has offered to sell 60,000 units of part S-6 each year to Han Products for $33.25 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 $114,000 However, Han Products has determined that 30% of the fixed overhead being applied to part S-6 will be avoided if part S-6 is purchased from the outside supplier. Required: 1. What is the net dollar advantage or disadvantage of accepting the outside supplier's offer? (Round "Total costs" and final answer to the nearest whole dollar amount.) Net dollar disadvantage 73.500

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Answers Solution Net dollar disadvantage 48187 Explanation Cost to make tota... View the full answer