Coffee MugsI Inc. a "Make or Buy" Decision Coffee Mugs, Inc. currently manufactures and sells ceramic coffee mugs. Coffee Mugs produces 100,000 mugs each year. Variable production costs are $0.80 per mug and annual fixed costs are $150,000. The mugs are sold for $3.00 each. Management is interested in outsourcing production to a reputable manufacturing company that can supply the cups for $2 per unit. If production is outsourced, all existing variable manufacturing costs will be eliminated and replaced by the $2 purchase price. Fixed costs will be reduced by 60 percent but 40% cannot be eliminated in the near future. 1. Use Google sheets and prepare a clear comparison of the present situation with in- house production and the prospective scenario with outsourcing. Be sure to show which alternative performs better! 2. How should Coffee Mug's management react in this situation? On your sheet, list at least two actions for them to take to tg to improve the results under outsourcing. (Note this is a business question rather than an accounting question!)