You need units of product Y per month. You currently make product Y inhouse at a cost of $unit which consists of $unit of fixed costs and $unit of variable costs. An outside supplier has offered to manufacture product Y for you at a wholesale price of $ per unit. If you outsource the production of Y to the outside supplier in the short term, your profit will:

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To determine the impact on profit of outsourcing the production of product Y to the outside supplier ... View the full answer