Business, 10.12.2019 02:31 trea56

Han products 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: direct materials $ 3.60 direct labor 10.00 variable manufacturing overhead 2.40 fixed manufacturing overhead 9.00 total cost per part $ 25.00 an outside supplier has offered to sell 30,000 units of part s-6 each year to han products for $21 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 value of $80,000. however, han products 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. required:
1.
calculate the per unit and total relevant cost for buying and making the product? (round your "per unit" answer to 2 decimal places.)

2. how much will profits increase or decrease if the outside supplier’s offer is accepted?

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Han products manufactures 30,000 units of part s-6 each year for use on its production line. at this...

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