Question: 4. Fast Finish, Inc. (FFI) has made a technological break- through in snow board finish application. FFI will apply the fin- ish for $0.23 per

4. Fast Finish, Inc. (FFI) has made a technological break- through in snow board finish application. FFI will apply the fin- ish for $0.23 per unit in variable costs plus a fixed annual cost of $230,000. Use the cost and demand information given in Prob- lem 3 for Downhill Boards to evaluate this proposal. (a) What will it cost Downhill Boards to outsource the fin- ishing process? (b) At what demand level does it make sense economically to outsource the finishing process? (c) What additional factors should be considered when mak- ing this outsourcing decision? 4. Fast Finish, Inc. (FFI) has made a technological break- through in snow board finish application. FFI will apply the fin- ish for $0.23 per unit in variable costs plus a fixed annual cost of $230,000. Use the cost and demand information given in Prob- lem 3 for Downhill Boards to evaluate this proposal. (a) What will it cost Downhill Boards to outsource the fin- ishing process? (b) At what demand level does it make sense economically to outsource the finishing process? (c) What additional factors should be considered when mak- ing this outsourcing decision

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