Question: How to solve this question please (all requirements) As a result of increased sales, The Music Box needs 400,000 jewel-case liners rather than 250,000. The
How to solve this question please (all requirements)

As a result of increased sales, The Music Box needs 400,000 jewel-case liners rather than 250,000. The Music Box has enough existing capacity to make all of the liners it needs. In addition, due to volume discounts, its variable costs of making each liner will decline to $0.28 per liner. Assume that by outsourcing, The Music Box can reduce its current fixed costs ($55,000) 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 The Music Box 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 As a result of increased sales, The Music Box needs 400,000 jewel-case liners rather than 250,000. The Music Box has enough existing capacity to make all of the liners it needs. In addition, due to volume discounts, its variable costs of making each liner will decline to $0.28 per liner. Assume that by outsourcing, The Music Box can reduce its current fixed costs ($55,000) 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 The Music Box 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
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