by $$9,000.$ There is no alternative use for the factory space freed through outsourcing, so it will just remain idle.

What is the maximum Media Systems will pay to outsource production of its CD liners?

Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit.

Cost if making liners

$=$

Cost if outsourcing liners

$q,$

$$

Using the basic formula you determined in the previous step, solve for the indifferent outsourcing cost per unit. $($Round your answer to three decimal places.$)$

Maximum price per unit Media Systems will pay to outsource production of its $CD$ liners: $$

Answer the following questions. $($Round your answers to three decimal places.$)$

Media Systems would be indifferent between outsourcing and making the liners if the $$ outsourcing price was how much per liner?

How does the outsourcing price per line compare to the price that Media Systems $$ would be indifferent so that Media Systems would be willing to outsource?