Multiple Choice $(60,000) $(23,325) $(32,300) $(3,325)

Assume company Is conslderlng buylng 10,000 unlts of component part ratherlhon maklng Tem A suppller has agreed to sell the company 10.000 unlts for prlce of S40 per unlt. The compony's accountlng system reports the followlng costs of maklng the part: l,a Units Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost Unit 18 44 per Year $ 18a,e 12a,e 2a,e $ 44a,e One-half ofthe traceable fixed manufacturlng overhead relates to supervlsory salarles end the remalnder relates to depreclatlon of equlpmenl wlth no salvage value. Ifthe company chooses to Ouy TIs component part from suppller, then the supervlsor who oversees Its productlon would Oe dlscharged_ Ifthe company beglns buylng the part from suppller, 11 can use freed up cepaclty to produce and sell 2,300 more unlts of another product that earns contrlbullon morgln per unlt of S725 Whet Is the financlol advantage (dlsodventage) of buylng 10,000 unlls from the suppler? Multlple Cholce o o o o 3160.000) 3123.325) S13.32SJ