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3. Pamper Chef is deciding whether to outsource the production of a certain component that is included in all of its products. It currently costs
3. Pamper Chef is deciding whether to outsource the production of a certain component that is included in all of its products. It currently costs Pamper Chef $1.20 to make each component in-house. If Pamper Chef outsources, it can buy the component ready-made for $0.90 each and can shut down the production facilities it is currently using to manufacture the component and save $20,000 a year in fixed costs. Annual requirement for the component is 12,000 units. What is the effect of outsourcing? Show the calculations for Make and the Buy
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