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Fixed MOH includes building amortization, insurance, and property taxes.There is one plant supervisor dedicated to overseeing the finishing process. His salary is$75,000, including benefits. The
Fixed MOH includes building amortization, insurance, and property taxes.There is one plant supervisor dedicated to overseeing the finishing process. His salary is$75,000, including benefits. The production manager, who earns $100,000 per year, spendsapproximately 20% of her time dealing with the finishing process.The equipment used in the finishing process has a total cost of $860,000 and is beingamortized over eight years. If the finishing were outsourced, the machines could be sold toa used equipment dealer for $80,000.Prepare an analysis of the outsourcing proposal and make an overall recommendation, taking into account both qualitative and quantitative considerations. Assume that 137,500units will be produced in a year
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