Rosner Company produces a part that has the following costs per unit: Direct material $8 Direct labor 3 Variable overhead

Rosner Company produces a part that has the following costs per unit: Direct material $8 Direct labor 3 Variable overhead 1 Fixed overhead 5 Total $17 Homeland Corporation can provide the part to Rosner for $19 per unit. Rosner Company has determined that 60 percent of its fixed overhead would continue if it purchased the part. However, if Rosner no longer produces the part, it can rent that portion of the plant facilities for $60,000 per year. Rosner Company currently produces 10,000 parts per year. Which alternative is preferable and by what margin

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