1. Ross Manufacturing in Atlanta is considering outsourcing a component from an offshore company. The company has collected the following data on each of the two options to make an economic decision. They sell each component for $175.00 into the retail market. . In-House: o Direct Materials Cost: $80.00 per unit o Direct Labor Cost: 0.5 hours to produce each unit @ $30.00 hourly wage o Manufacturing Overhead Cost: 85% of Direct Labor Cost o Property, Plant, and Infrastructure Cost: $7,000,000.00 . Outsource: o COGS: $65.00 per unit o Royalty Expense: $5.00 per unit o Contracting, Legal, and Licensing Cost: $1 1,000,000.00 A. Write up the profit function. Write up the cost functions for each option. Then, write up the profit function for each option. B. What is the breakeven number of units for each option? C. What is the profit of each option when we are selling 400,000 units? How about for 50,000 units? D. At how many units is the profit to make in-house and the profit from outsourcing production equal? E. Critical Thinking... Why would in-house be better than outsourcing? Why would outsourcing be better than in-house