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2. Outsourcing Decision Animals United currently outsources pet beds for their product line. The beds are purchased for $40 each. The company is considering making
2. Outsourcing Decision Animals United currently outsources pet beds for their product line. The beds are purchased for $40 each. The company is considering making the beds instead and have looked at the costs involved. They are: Unit-level material cost Unit-level labor cost Unit-level overhead cost Batch-level cost (100 per batch) Product-level supervisor salary Allocated facility level cost $8 $3 $2 $150 $20,000 $16,000 Assume the company has demand for 500 beds. If they decide to make the beds, what are the total relevant costs? Should Animals United buy or make the beds
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