Han Products manufactures 27,000 units of part S activity the cost per unit tor part S IS esch year for use on its production line. A: this level of S 3.90 7.00 2.70 9.D0 Direcl malerials Direct labor ariable manufacturing overheed Fxed manufacturnng overheed Totel cost per part S22.60 An outside supplier has ottered to sell 2floo units ot part S each year to Han Products tor $44.00 pr part If Han Products accepts this otter the tacilites now beingdto manutacture part S-i could he rented to anolher company at an annual rental of 5738,30

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