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A company is considering outsourcing the production of a key component of its primary product. An analysis of differential costs indicates that the company could

A company is considering outsourcing the production of a key component of its primary product. An analysis of differential costs indicates that the company could save $1,000,000 per year by outsourcing. Savings of this magnitude are significant to this company. Briefly describe the qualitative aspects of outsourcing that must be considered prior to making the decision of whether or not to outsource the production of this component.

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