Exercise $13-11($Algo$)$ Make or Buy Decision $[$LO$13-3]$

Han Products manufactures $31,000$ 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 $31,000$ units of part S$-6$ each year to Han Products for $$18$ 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 $$81,000.$ However, Han Products has determined that two$-$thirds of the fixed manufacturing

overhead belng applied to part $S-6$ would continue even if part S$-6$ were purchased from the outside supplier.

Required:

What is the financlal advantage $($disadvantage$)$ of accepting the outside supplier's offer?