Exercise 13-12 (Algo) Sourcing Decisions [LO13-3] Han Products manufactures 33,000 units of part S-6 each year...

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Exercise 13-12 (Algo) Sourcing Decisions [LO13-3] Han Products manufactures 33,000 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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.70 10.00 2.30 12.00 $ 28.00 An outside supplier has offered to sell 33,000 units of part S-6 each year to Han Products for $22 per part If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company for $83,000 per year. However, Han Products determined 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? Financial advantage Exercise 13-12 (Algo) Sourcing Decisions [LO13-3] Han Products manufactures 33,000 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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.70 10.00 2.30 12.00 $ 28.00 An outside supplier has offered to sell 33,000 units of part S-6 each year to Han Products for $22 per part If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company for $83,000 per year. However, Han Products determined 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? Financial advantage