Question: why the answer is -2, do the calculation for me Quiche & Tell, Inc. is considering outsourcing one of its many products rather than making
Quiche & Tell, Inc. is considering outsourcing one of its many products rather than making it internally. The supplier will charge $15,000 for 3.000 quiches. The costs per quiche to make x include: Cost per Quiche Allocated Corporate Overhead $1 $2 Direct Labor $1 Direct Materials $7 Manager's Salary Quiche & Tell outsources, what is the savings for loss) per quiche? If the amount is a loss include a negative sign "-" (not parentheses) in your answer. Do not include a dollar sign (5) in your answer. Selected Answer: INone Given Correct Answer: -2 Response See Module 7, LO 7.2 Outsourcing Decision Feedback The relevant costs are those that will change as a result of the decision. In this example, the variable direct labor and materials will be eliminated if the company outsources and thus are relevant. The manager's salary and allocated costs will not change and thus are irrelevant
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