Fun Sports makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Fun Sports for $$23$ per pair. Fun Sports needs $200,000$ pairs of poles per period. Fun Sports can only avoid $$110,000$ of fixed costs if it outsources; the remaining fixed costs are unavoidable. Fun Sports currently has the following costs at a production level of $200,000$ pairs of poles:

$($Click the icon to view the table.$)$

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 $$1,630,000$ of operating income, should Fun Sports outsource ski pole production?

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 cost to make exceeds the cost to outsource.$)$

$\backslash$table$[[$Incremental Analysis Outsourcing Decisions,Outsource Ski$],[$Make Ski Poles,Poles,Difference$],[$Variable costs:,$3030000,4600000,(1570000)$

the icon to view the table.$)$

Data table

$\backslash$table$[[$Manufacturing Costs,,otal Cost,$\backslash$table$[[$Cost per pair$],[$ pairs