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During 2020, UWE Ltd made 10.000 sets of Caverna board game, the costs of which are shown in the Table below. An independent contractor has

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During 2020, UWE Ltd made 10.000 sets of Caverna board game, the costs of which are shown in the Table below. An independent contractor has offered to make the same board game for UWE Ltd for $90 each. If the equipment is not used to produce Caverna board game in the production process, it can be rented out for $80,000 per year. Unit-level materials costs (10,000 units X 530) $ 300,000 Unit-level labour costs (10,000 units X $40) Unit-level overhead costs (10,000 58) 80.000 Depreciation on manufacturing equipment 120,000 Caverna production supervisor's salary 60,000 400.000 Allocated portion of facility-level costs 160,000 Total costs $1,120,000 Based on the quantitative data, should UWE Ltd outsource production of Caverna board game? Support your answer with appropriate computations. Specifically, how much more or less would it cost to buy Caverna than to make them? Would your answer change if the volume of sales were increased to 14,000 units? Support your answer with appropriate computations. B 1

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