Question
avoid $160,000 of fund skequipment Assume that Alemic has offered to produco sk poles for Pro - $kk for $23 per pair. Pro-Ski neods 110,000
avoid $160,000 of fund skequipment Assume that Alemic has offered to produco sk poles for Pro - $kk for $23 per pair. Pro-Ski neods 110,000 pairs of poles per period. Pro - Sik can ony Hit (Cick,000 of fured costs if it outsources; the remaining fixed costs are unavoidable. Pro - ski currently has the following costs at a production level of 110,000 palis of poles: 1. Should Pro-Siki cutsource ski pole production if the next best use of the freed capacty is to leeve it idle? What eflect wit outsourcing have on Pro-Skis opersting income? 2. If the freed capacity could be used to produce ski boots that would provide $978,500 of operating income, should Pro - Ski outsource ske pole production? 1. Should Pro-Ski cutsource ski pole production if the next best use of the freed capactily is to leave it idie? What eflect will cutsourcing have on Pro- Ski's operating inceme? Begin by preparing the incremental analysts for outsourcing decition. (Use a minus sign or parentheses in the Difference column if the cost io make exceods the cost to cutsource.) 2. If the freed capecty could be used to produce sti bcots that would provide $978.500 of operating income, should Pro- 5k ouscurce siki pole production? Begin by preparing the incremental analyais lor cutsourcing decision if the freed capocity could be used to produce ski bocts that would provide 5978,500 of operating income. (Complete al input. fields. Enter a "O" for ary zero balances. Use a minus sign or parectheses in the Dfflerence column ir the cost to make exceeds the cost to outsource.) If the freed capacity could be used to produce ski boobs that would provide $978,500 of operating income, Pro - sk eutsource its sto pole production becoust its operating income would
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