Asli produces winter coats and is currently producing 10,000 luxury coats annually. A supplier has offered to manufacture the luxury coats for Asli for $200 per coat. Asli incurs unit-level costs of $100 per unit. Asli also spends $140,000 on product design each year and incurs $60,000 of facility-level costs. Based on your quantitative analysis, should Asli Company outsource the luxury coats? Group of answer choices 

Yes, outsourcing will increase profit by $860,000

No, outsourcing will decrease profit by $1,000,000 

No, outsourcing will decrease profit by $860,000 

Yes, outsourcing will increase profit by $1,000,000

Answer rating: 100% (QA)

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