ATTITUTO Mountaineer, Inc, currently makes 6,000 paris of weatherproof hiking boots each year. The boots sell for $119. Mountaineer has been manufacturing the boots and applying the 2 weatherproofing as the final process before packaging. However, the company is concerned that the EPA will not approve of their disposal of the residue from the process, resulting in heavy monetary penalties. Mountaineer has found a manufacturing company that can 5 waterproofing and packaging of the boots, its insurance premiums will be reduced. 15 Mountaineer's standard cost of the waterproofing and packaging process for one unit'is 17 listed below. 19 Direct materials ($1 for waterproofing and S1 for packaging) 50. Direct labor (same person waterproofs and packages) 1 Variable overhead ($6 for waterproofing and $2 for packaging) 52 Direct fixed overhead (Insurance) 53. Nondifferential fixed overhead 54 Total Cost 57 Required: 58 Should Barber outsource the waterproofing and packaging? Why? 59 Make Outsource 61 Purchase price of tube 62 Direct material 63 Direct labor 64 Variable overhead 65 Direct fixed overhead 66 Relevant costs per unit 67 Number of units 68 Total cost