1. Describe the evaluation method that Bridgeton is using to determine whether to outsource. What issues do you think might that method bring?
2. How is the analysis using cost behavior classification important in Bridgeton? How is analysis using product cost classification important? How is the analysis using differential cost and revenues important?

3. Explain how you would determine the cost behavior classification (i.e. variable, fixed, or mixed) for the each of the overhead costs in Exhibits 2 and 3. Classify each cost as to their behavior. Support the classification you assigned. 5. Which costs are relevant to the decision about outsourcing the manifold production?