DEF Distribution is considering outsourcing its delivery services. The following information is available for in-house and outsourced options:

• In-house: Fixed costs $50,000, Variable costs $5 per unit
• Outsourced: Fixed costs $20,000, Variable costs $8 per unit

Requirements:

1. Calculate the total cost of delivering 10,000 units using both in-house and outsourced options.
2. Determine whether DEF Distribution should continue to deliver in-house or outsource based on total costs.
3. Discuss the concept of relevant costs in decision-making for DEF Distribution.
4. Analyze the qualitative factors that DEF Distribution should consider in its outsourcing decision.
5. Evaluate the financial implications of outsourcing on DEF Distribution's profitability.