A clever engineer at Soho figured out that if they bought the cameras from Goldstein then Soho could use their newly idle capacity in other ways. Specifically, Soho could use it to produce 100,000 (external) microphones. Soho's management accountants estimated the following future revenue (

$000

) and future costs

($

)

>

(

000)

if Soho decided to manufacture and sell these microphones.\ Total projected revenues and costs from manufacturing and selling microphones\ \\\\table[[Revenue,,

$8,000

A clever engineer at Soho figured out that if they bought the cameras from Goldstein then Soho could use their newly idle capacity in other ways. Specifically, Soho could use it to produce 100,000 (external) microphones. Soho's management accountants estimated the following future revenue ($000) and future costs ($>000) if Soho decided to manufacture and sell these microphones. Total projected revenues and costs from manufacturing and selling microphones Which of the two alternatives should Soho choose? 1) Keep on making cameras (inhouse) and do not produce microphones. 2) Buy and sell cameras from Goldstein and use idle capacity to make microphones