Han Products manufactures 29,000 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 $3.70
Direct labor 12.00
Variable manufacturing overhead 2.30
Fixed manufacturing overhead 9.00
Total cost per part $27.00

An outside supplier has offered to sell 29,000 units of part S-6 each year to Han Products for $38.00 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 $626,700. 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 net dollar advantage or disadvantage of accepting the outside supplier’s offer? (Do not round intermediate calculations)

Net dollar advantage of buying from  supplier                  $ 191.700  

Explanation:

Computations

Cost of internal production                           $ 27 per unit

Total units produced                                      29,000 units

Total cost of production                                 $ 783,000

Cost of purchase                                             $ 38 per unit

Incremental cost of production                      $ 9 per unit

Total incremental cost incurred in buying from outside -

29,000 * $ 9                                                                         $ 261,000

Add: Fixed costs retained (29,000 units * $ 9 *2/3) =       $ 174,000

Total incremental costs                                                       $ 435,000

Rental Income                                                                      $ 626,700

Net dollar advantage of buying from  supplier                  $ 191.700                    

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed

government control and resources