2. Outsourcing Decision Off Their Rockers, Inc. currently manufactures the rocking chairs they sell in their stores. The CEO was recently approached with an offer to buy the rockers from another supplier for $150/each. The company currently has the following costs associated with manufacturing the rocking chairs: 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 $40 $30 $16 $150 $50,000 $80,000 Assume the company has demand for 2000 rockers. What are the relevant costs in the outsourcing decision? askaland inomasin Should Off Their Rockers buy or make the rocking chairs? (show rationale)

Outsourcing Decision Off Their Rockers, Inc. currently manufactures the rocking chairs they sell in their stores. The CEO was recently approached with an offer to buy the rockers from another supplier for $150/ each. The company currently has the following costs associated with manufacturing the rocking chairs: Assume the company has demand for 2000 rockers. What are the relevant costs in the outsourcing decision? Should Off Their Rockers buy or make the rocking chairs? (show rationale)