For the data below, determine whether outsourcing of the particular manufacturing operation makes financial sense: ◦The current variable cost per unit $10.00. ◦The current fixed costs in total $100,000. ◦The current fixed costs attributed to this product line $60,000. ◦The quote from an outside vendor to perform the operation $13.00. ◦The anticipated volume of widgets needed is 10,000. Make sure to show your work so you can earn partial credit if your answer is wrong

 

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