Theory ofconstraints, throughput contribution, relevant costs. Refer to the information in Exercise 19-24 in answering the following requirements; there is no connection between the situations.

Required 1. An outside contractor offers to do the finishing operation for 12,000 units at $12 per unit, double the $6 per unit that it costs Mayfield to do the finishing in-house. Should Mayfield accept the subcontractor’s offer?

2. The Hunt Corporation offers to machine 4,000 units at $4.80 per unit, half the $9.60 per unit that it costs Mayfield to do the machining in-house. Should Adayfield accept the sub¬

contractor’s offer?