Could i get the formula and explanation for this problem please? A hospital is evaluating whether to outsource or perform in$-$house a large set of blood and urine laboratory tests.$$ The fixed cost of the laboratory located in the hospital is $$800,000$ and the weighted average variable cost per test if performed in$-$house is $$28\mathrm{.}75.$ A third$-$party lab located one city block from the hospital will perform the same tests and distribute the results electronically to the hospital at a price of $$32\mathrm{.}00.$ If the annual volume last year was $250,000$ tests, should the hospital outsource or make$-$in$-$house?