# On the companys regular sales and the order could be

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on the company’s regular sales and the order could be fulfilled using the compa
any’s existing capacity without affecting any other order.
Han Products manufactures 21,000 units of part S-6 each year for use on its prod Direct materials \$5.10 Direct labor \$6.00 Variable manufacturing overhead \$3.50 Fixed manufacturing overhead \$15.00 Total cost per part \$29.60 Required: An outside supplier has offered to sell 21,000 units of part S-6 each year to Han P a. Calculate the per unit and total relevant cost for buying and making the produc
b. How much will profits increase or decrease if the outside supplier’s offer is acc
duction line. At this level of activity, the cost per unit for part S-6 is: \$470,400.00 cepted? Products for \$42.00 per part. If Han Products accepts this offer, the facilities now ct? (Round your "per unit" answers to 2 decimal places.)
w being used to manufacture part S-6 could be rented to another company at an a
annual rental of \$461,400. However, Han Products has determined that two-thir
rds of the fixed manufacturing overhead being applied to part S-6 would continue
e even if part S-6 were purchased from the outside supplier.