1. Using differential analysis, what is the relevant cost of the "make" alternative if outsourcing inc. continues to make the part needed?

2. what is the relevant cost of the "buy" alternative if outsourceing inc. buys the part needed from the supplier?

3. could use the released space to prototype a new product, product B, which is expected to generate an additional income of $2,000. what is the relevant cost of the "make" alternative if outsourcing inc. uses the space to prototype product B?

4. what us the relevant cost of the "buy" alternative if outscourcing inc. uses the space to prototype product B?

5. based solely on your differential analysis and assuming outsourcing inc. would use the released space to produce Product B if it buys the part of the supplier, should outsource inc. buy the part from the supplier or continue to make the part?

6. list two additional qualitative factors (nonfictional factors) that should be considered when making the decision to make or buy?

Question 3 2 pts Use the following information to answer Question 1 through Question 6. Outsourcing Inc., currently produces all the parts it needs for its one product Product A. The following information has been gathered when 10,000 units of Product A were made. Per Unit Total Direct materials $ 20,000 $ 2.00 Direct labor 10,000 1.00 Unit-related overhead 5,000 0.50 Batch-related overhead 15,000 1.50 Facility-sustaining overhead 60,000 6.00 Unit-related selling 3,000 0.30 Facility-sustaining administrative 25.000 2.50 Total $138.000 $13.80 A supplier has offered to provide Outsource with one of the parts it needs for $1.40 per unit. If Outsource accepts the supplier's offer, its direct materials cost will decrease by 30%, its direct labor cost will decrease by 40%, and its unit-related overhead will decrease by 20%. No other costs will change. Question 3 2 pts Use the following information to answer Question 1 through Question 6. Outsourcing Inc., currently produces all the parts it needs for its one product Product A. The following information has been gathered when 10,000 units of Product A were made. Per Unit Total Direct materials $ 20,000 $ 2.00 Direct labor 10,000 1.00 Unit-related overhead 5,000 0.50 Batch-related overhead 15,000 1.50 Facility-sustaining overhead 60,000 6.00 Unit-related selling 3,000 0.30 Facility-sustaining administrative 25.000 2.50 Total $138.000 $13.80 A supplier has offered to provide Outsource with one of the parts it needs for $1.40 per unit. If Outsource accepts the supplier's offer, its direct materials cost will decrease by 30%, its direct labor cost will decrease by 40%, and its unit-related overhead will decrease by 20%. No other costs will change