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Fun Sports makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Fun Sports for $17 per pair Fun Sports needs

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Fun Sports makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Fun Sports for $17 per pair Fun Sports needs 140,000 pairs of poles per period. Fun Sports can only avoid $150,000 of fixed costs if it outsources, the remaining fixed costs are unavoidable. Fun Sports currently has the following costs at a production level of 140,000 pairs of poles: (Click the icon to view the table.) 1. Should Fun Sports outsource ski pole production if the next best use of the freed capacity is to leave it idle? What effect will outsourcing have on Fun Sports' operating income? 2. If the freed capacity could be used to produce ski boots that would provide $397,000 of operating income, should Fun Sports outsource ski pole production? 1. Should Fun Sports outsource ski pole production if the next best use of the freed capacity is to leave it idle? What effect will outsourcing have on Fun Sports' operating income? Begin by preparing the incremental analysis for outsourcing decision. (Use a minus sign or parentheses in the Difference column if the cos to make exceeds the cost to outsource.) Data table

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