Fun Sports makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Fun Sports for $20 per pair. Fun Sports needs 110,000 pairs of poles per period. Fun Sports can only avoid $100,000 of food costs it outsources, the remaining foed costs are unavoidable. Fun Sports currently has the following costs at a production level of 110.000 pairs of poles: (Click the loon 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? If the freed capacity could be used to produce ski boots that would provide $585,000 of operating income, should Fun Sports outsource ski pole production 2. Ski Poles Ski Poles Difference Outsourcing Decisions Total cost of producing 110,000 pairs of poles (from Requirement 1) Less: Income from ski boots if outsource Net cost (Click the icon to view the table.) Cost per pair ect will outsourcing have on Should Fun Sports outsource skip Fun Sports' operating income? If the freed capacity could be used n Sports outsource ski pole $ $ Outsourcing Decisions tal cost of producing 110,000 pairs of poles (from Requirement 1) ess: Income from ski boots if outsource Manufacturing Costs Direct Materials Direct Labor Variable MOH Total Cost 1,045,000 99,000 561,000 693,000 2,398,000 9.50 0.90 5.10 6.30 Fixed MOH $ 21.80 Total let cost