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Part S70 is used in one of Broce Corporation's products. The company's Accounting Department reports...

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Accounting

Part S70 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 100,000 units of the part that are needed every year.
An outside supplier has offered to make the part and sell it to the company for $0.46 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only 25% of these allocated general overhead costs would be avoided.
Required:
A. What is the financial advantage (disadvantage) of purchasing part S70 rather than making it?(Round per unit to 2 demical places)
B. Based on the requirements (a) what would be the decision of the manager with respect to part S70 and why?
C. Based on your judgements, lest 2 advantages of making product (Part S70) by Broce Corporation?
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