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DeVry Stud X Week 5: Q X Question 2 X Question 1 x Module 5: X https://ww x Module 5 X AWS Acade x AWS Certif X ezto.mheducation.com/ext/map/index.html Week 5: Quiz Saved 2 Adams Chemical Company makes a variety of cosmetic products, one of which is a skin cream designed to reduce the signs of aging Adams produces a relatively small amount (16,000 units) of the cream and Is considering the purchase of the product from an outside supplier for $4.60 each. If Adams purchases from the outside supplier, it would continue to sell and distribute the cream under its own brand name. Adams's accountant constructed the following profitability analysts: Ravarie (16,860 units . $10.58) $ 168,603 Unit level materials costs (16,860 units . $1.50) (24,800) Unit-level labor costs (16,800 units . 50.6a) (9,500) Unit level overhead costs (16,680 . $0.20) (3,208) Unit-level selling expenses (16,680 - $8.30) (4,803) Contribution margin 126,480 Skin cream production supervisor's salary (45,600) Allocated portion of facility-level costs (11,500) Product-level advertising cost (35,800) Contribution to companywide income $ 34,908 Required a. Identify the cost Items relevant to the make or-outsource decision. b. What Is the avoidable cost per unit if the outsourcing decision Is taken? Should Adams continue to make the product or buy it from the supplier? . Suppose that Adams Is able to increase sales by 10,000 units (cales will Increase to 26,000 units). Calculate the total avoidable costs. At this level of production, should Adams make or buy the cream? Complete this question by entering your answers in the tabs below. Required A Required C What is the avoidableguest per unit if the outsourcing decision is taken? Should Adams continue to make the product or buy it from the supplier? (Round your answer to 2 decimal places.) Total avoidable costs per unit Should Adams continue to make the product of buy it from the supplier?