Description: Gabriela Manufacturing must decide whether to insource or outsource a new toxic$-$free miracle carpet cleaner that works with its' Miracle Carpet Cleaning Machine. If they insource the product, the process will incur $$250,000$ of annual fixed costs and $$1\mathrm{.}25$ per unit of variable expenses. If it is outsourced, a supplier has offered to make it for an annual fixed price of $$90,000$ and a variable cost of $$2\mathrm{.}05$ per unit.

a$.$ Given these two alternatives, the difference or the indifference point $($where total costs are equal$).$

b$.$ What would you recommend Gabriela Manufacturing do if the expected demand for the new miracle cleaner is $400,000$ units?

Format: This assignment is meant to be completed using a spreadsheet. You may submit it as an Excel file, though you may copy and paste your spreadsheet into the Word document $/$ PDF and submit it that way if you prefer.