2. Boys `R Us sells suits to young men. It is determined that the company can produce its own suits for a fixed annual cost of $1,000,000 and a production cost of $120 per suit. The current demand is 30,000 units. A potential supplier charges a $1,500,000 fixed annual cost. (4 points)

1. What will be the total costs for Boys `R Us to produce its own suits? (1 points)
2. What will be the variable cost per unit from the potential supplier that would make Boys `R Us indifferent to the two options (insource or outsource) in terms of costs (2 points)
3. What additional criteria should Boys `R Us consider before outsourcing (Please list at least three factors other than costs) (1 point)