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Exhibit 1 in the attached Excel files shows that the cost of manufacturing 100,000 unitsby Circuit division is $3,500,000 and the cost of outsourcing same

Exhibit 1 in the attached Excel files shows that the cost of manufacturing 100,000 unitsby Circuit division is $3,500,000 and the cost of outsourcing same units through externalsupplier is $3,300,000, so the cost of manufacturing is $200,000 more than outsourcing.Circuit division has excess capacity of 33,333 units and if it produces and sell theseunits the cost can be decreased by $100,000. So, the net benefit from outsourcing is$100,000 to the Wallace group how did they get 3500000

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