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12.00 Han Products manufactures 29,000 units of part 5-6 each year for use...

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12.00 Han Products manufactures 29,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 is: Direct materials $ 3.70 Direct labor Variable manufacturing overhead 2.30 Fixed manufacturing overhead Total cost per part $ 27.00 An outside supplier has offered to sell 29,000 units of part 5-6 each year to Han Products for $23 per part. If Han Products accepts this offer, the facilities now being used to manufacture part 5-6 could be rented to another company at an annual rental of $79,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part 5-6 would continue even if part 5-6 were purchased from the outside supplier. 9.00 Required: What is the financial impact of accepting the outside supplier's offer? (Indicate negative cash flows with a negative sign.) (See below for hints if you need them.)

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