Swenson Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: 
Of the fixed factory overhead costs, $35,000 is avoidable.
Required:
a. Assuming there is no alternative use for the facilities, should Swenson take advantage of an offer from a supplier who is willing to sell Swenson 10,000 units of the same part for $64 per unit?
b. Would your answer to Part (a) change if the facilities could be rented for $50,000 a year?
Definitions:
Father of Medicare
A title often attributed to Tommy Douglas, a Canadian politician known for his role in the establishment of universal healthcare in Canada.
Tommy Douglas
A Canadian social-democratic politician known as the father of Medicare in Canada for his role in the introduction of publicly funded health care.
Active Baptism
A religious ceremony signifying spiritual cleansing and admission to a Christian church, often involving immersion in water.
Tenets of the Faith
Fundamental beliefs or principles that are held as true by members of a particular religion or faith system.
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