Skip to main contentHomework 11 (Chapter 12 Part I)AnswerSavedHelp opens in a new windowSave & ExitSubmit Item4 1.5 points my workCheck My Work button is now enabledItem 4 Han Products manufactures 35,000 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 $ 3.90 Direct labor 12.00 Variable manufacturing overhead 2.10 Fixed manufacturing overhead 9.00 Total cost per part $ 27.00 An outside supplier has offered to sell 35,000 units of part S-6 each year to Han Products for $23 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 $85,000. 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: What is the financial advantage (disadvantage) of accepting the outside supplier’s offer? Garrison 16e Rechecks 2018-10-04 PrevQuestion 4 of 4 Total4 of 4Visit question mapThis is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button. Next