Time left Walsh Corporation is presently making part Z43 that is used

Time left Walsh Corporation is presently making part Z43 that is used in one of its 1:43:52 products. A total of 5,000 units of this part are produced and used every year. The companys Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials 1.10 Direct labor $3.10 Variable overhead $6.90 Supervisors salary 5.80 Depreciation of special equipment $ 5.20 $ 5.60 Allocated general overhead An outside supplier has offered to produce and sell the part to the company for $20.80 each. If this offer is accepted, the supervisors 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 suppliers offer were accepted, only $4,000 of these allocated general overhead costs would be avoided. If management decides to buy part Z43 from the outside supplier rather than to continue making the part, what would be the annual financial advantage (disadvantage)? Select one: a. ($15,500) b.($38,500) ($34,500) C. d. ($30,500)

used