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Vance Corporation uses Part B32 is used in its refrigerator line. The accounting team at...

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Accounting

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Vance Corporation uses Part B32 is used in its refrigerator line. The accounting team at Vance Corporation reports the unit product cost of producing the 12,000 units of part B32 each year are as follows: Per Unit Direct materials $8.70 Direct labor $2.70 Variable overhead $3.30 Supervisor's salary $1.90 Depreciation of special equipment $1.80 Allocated general overhead $6.00 An outside supplier has offered to make and sell part B32 to the Vance Corporation for $21.40 each. If this offer is accepted, the supervisor's salary and all of the variable costs 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, 50% of these allocated general overhead costs would be avoided. Based on this data, the financial advantage (disadvantage), per unit of purchasing the parts from the outside supplier would be

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