Problem 16A Payoff Tables (10 points) Based on the cost model and payoff table provided, determine the average payoff strategy, aggressive, and conservative recommendation. Remember that this payoff table is based on cost so you will want to recommend decisions under each strategy which minimize cost. Enter your answer in the table by stating whether manufacturing or outsources would be the best choice for each strategy and the value associated with that option. 1 Problem 16A 2 Outsourcing Decision Model (for information only) 3 Data 5 Manufactured in-house Fixed cost Unit variable cost $50,000 $125 Payoff Table 9 Purchased from supplier Unit cost $175 Demand 1,000 1,200 $175,000 $200,000 $175,000 $210,000 800 $150,000 $140,000 Manufacture Outsource 1,400 $225,000 $245,000|| Production volume 1500 ANSWER 14 Model Manufacture/o utsource Value Total manufacturing cost Total purchased cost $237,500 $262,500 Average Payoff Aggressive Conservative 19 Cost difference (Manufacture - Purchase) Best Decision -$25,000 Manufacture