Royal Company manufactures 20,000 units of Part R-3 each year for use in its finished products. At this level of activity, the costs per unit for Part R-3 are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead i Total cost per part O avoidable cost O variable cost O fixed cost. O junk cost $4.80 7.00 3.20 An outside supplier has offered to sell 20,000 units of Part R-3 to Royal Company for $23.50 per part. If Royal Company accepts the supplier's offer, the facilities now being used to manufacture Part R-3 could be rented out to another company for $150,000 per year. The costs of producing Part R-3 are avoidable: however, Royal Company has determined that $6 of the foxed manufacturing overhead being applied to Part R-3 would continue even if Royal Company purchases Part R-3 from the outside supplier. in the context of Royal Company's decision to make or buy Part R-3, the $150,000 rental income is an oportunity cost 10.00 $25.00