Asli produces winter coats and is currently producing 10,300 luxury coats annually. A supplier has offered to manufacture the luxury coats for Asli for $206 per coat. Asli incurs unit-level costs of $106 per unit. Asli also spends $140,300 on product design each year and incurs $60,300 of facility-level costs. Based on your quantitative analysis, should Asli Company outsource the luxury coats?

Multiple Choice

Yes, outsourcing will increase profit by $1,001,500

No, outsourcing will decrease profit by $1,001,500

No, outsourcing will decrease profit by $889,700

Yes, outsourcing will increase profit by $889,700