3 As the CEO of Hakoopian clothing company you want to decide whether to manufacture a particular product or outsource its production. Your business analysis team develops a spreadsheet model and uses Excel's What If analysis to analyze "Savings due to Outsourcing" based on different scenarios. The results below are provided to you as the CEO. Parameters 2 Outsourcing Cost per unit 4 Fixed Cost 5 Material cost per unit 6 Labor cost per unit. 10 4.50 C D Savings due to outsourcing per prod. volume Prod.Vol. 5 14,500.00 5 25,000.00 10000 $21,500 $ 2.15 20000 $18,000 2.00 30000 $14,500 40000 $11,000 50000 $7,500 30000 60000 $4,000 70000 $500 80000 ($3,000) 90000 56,500 7 8 Model 9 Production Volume 11 Total Outsource Cost 12 $ 135,000.00 13 Total Fixed Cost $ 25,000.00 14 Total Material Cost $ 64,500.00 15 Total Labor Cost $60,000.00 $ 149,500.00 17 18 Savings due to outsourcing 14,500.00 19 16 Total Cost 100000 $10,000 The outsourcing cost per unit is $4.50 The amounts in porantheses are negative (lost) Left column represent production volume. Right column represent "Savings due to outsourcing N Savings due to outsourcing per prod. volume and outsource cost per unit $ 14,500.00 $ 4.20 $ 4.35 $ 4.50 $ 4.65 5 4.30 10000 $24,500 $21,000 $21,500 520,000 $18.500 20000 $24,000 $21,000 30000 $23,500 $19,000 40000 $23,000 $17,000 50000 $22.500 $15,000 60000 $22,000 $13,000 70000 $21,500 $11,000 B0000 $21,000 $9,000 90000 $20.500 $7,000 100000 $18,000 $15,000 $12,000 $14,500 $10,000 $5,500 $11,000 $5,000 $7,500 50 151000) ($7,500) $4,000 $5,000) 314.000 $500 $10,000) 520,500 (53,000) (511,000) 27000 154.500 $20,000) 51,500 $20,000 $5,000 $10,000) (525.000) (540.000 The amounts in parentheses are negative ess The first (left-most) column represents the production volume The top row amounts represent "Outsourcing Cost per unit The amount in each cell represent "Savings due to outsourcing Assuming that you outsource the production of 50,000 units and the company to which you outsource charges you $4.50 per unit, based on the results above, how much will be the savings (or loss) due to outsourcing? Note: Do not use the $ sign in your answer. For example, if there is a saving of $99, the answer is 99 Use a negative sign before the amount to show that it is a loss. For example, if there is a loss of $99, the answer is -99. if there is a saving of $99, then the answer is 99