1 As the CEO of Hakoopian clothing company you want to decide whether to manufacture a particular product or outsource its production. Your business analysis team develops a spreadsheet model and uses Excel's What-if analysis to analyze "Savings due to Outsourcing based on different scenarios. The results below are provided to you as the CEO, 1 Parameters 2 Outsourcing Cost per unit 4 Fixed Cost 4.50 Savings due to outsourcing per prod. volume Prod.Vol $14,500.00 $ 25,000.00 5 Material cost per unit $ 2.15 10000 20000 $18,000 521,500 6 Labor cost per unit- 200 30000 $14,500 7 40000 $11,000 Model 9 Production Volume 10 50000 $7,500 30000 60000 $4,000 70000 $500 11 Total Outsource Cost $ 135,000.00 80000 (51.000 12 90000 56.500 13 Total Fised Cost $ 25,000.00 100000 1510,000 14 Total Material Cost $ 64,500.00 15 Total Labor Cost $ 60,000.00 16 Total Cost $ 149,500.00 17 18 Savings due to outsourcing $ 14,500.00 19 The outsourcing cost per unit is 54.50 The amounts in parentheses are Aegative fles Left column represent production volume. Right column represent "Savings due to outsourcing H Savings due to outsourcing per prod. volume and outsource cost per unit 5 14,500.00 $ 4.20 5 4.35 5 450 5 465 4.80 10000 $24,500 $23,000 $21.500 $20,000 $18,500 20000 $24,000 $21,000 $18,000 $15,000 $12,000 $5.500 51.000 50 62.500 14000 30000 $23,500 $19,000 $14,500 $30,000 0000 $23,000 $17,000 $11.000 $5,000 10000 $22,500 $15,000 $7,500 60000 $22,000 $11,000 $4,000 5000 70000 $21,500 $11,000 $500 $10,000 1530500 80000 $21,000 $9,000 151,000 $15,000 $27,000) 30000 $20.500 $7,000 14,500) ($20,000 $33,000 100000 $30,000 $5,000 $10,000 1525.000 50.000 The amounts in parantheses are negative De The first (left mast) column represents the production volume The top row amounts represent "Outsourcing Cost per unit." The amount in each cell represent "Sevings due to outsourcing" Assuming that the company to which you outsource charges you $4.80 per unit, based on the results above, which range for production volume contains the break-even point? 10,000 to 20,000 20,001 to 30,000 O30,001 to 40,000 O40,001 to 50,000 50,001 to 60,000 O 60,001 to 70,000 O 70,001 or more It cannot be determined