Question: SUBMIT YOUR WORK FOR THIS QUESTION - Name the question LIGHTING. DO NOT LEAVE CONNECT BLANK - at least input the quantitative results. currently considering

 SUBMIT YOUR WORK FOR THIS QUESTION - Name the question LIGHTING.

SUBMIT YOUR WORK FOR THIS QUESTION - Name the question LIGHTING. DO NOT LEAVE CONNECT BLANK - at least input the quantitative results. currently considering outsourcing the part to a overseas manufacturer. The company normal sells 8,000 units per year with the following costs of producing and selling a single unit of XN103 part: overhead) will continue even if the part were purchased from an outside supplier. Required: 1. Determine the relevant cost per unit, and in total to continue making the XN103 part inhouse. 3 marks 2. Determine the relevant cost per unit, and in total to outsource the XN103 part. If the offer is accepted, how will annual profits be increased or decreased? 3 marks 3. Provide a qualitative analysis of ABC's decision to outsource the production of it's XN103 part. (a minimum of 2 pros and 2 cons) 4 marks 4. Based on both your quantitative and qualitative analysis, what do you recommend for ABC and why or why not? (not a one word answer, imagine you are speaking to the owner) 2 marks why or why not? 3 marks

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!