Sharp Corporation produces 8,000 parts each year, which are used in the production of one of its products. The unit product cost of a part is 36, computed as follows:
Variable production cost= 16
Fixed production cost= 20
Unit product cost= 36
The parts can be purchased from an outside supplier for only 28 each. The space in which the parts are now produced would be idle and fixed production costs would be reduced by one- fourth. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:
A) 24,000
B) (24,000)
C) 56,000
D) (56,000)