Handsome Jack manufactures sports coats for dashing gentlemen. Each jacket requires, depending on the style of garment, between two and six custom buttons, which the company has historically produced. The costs to produce one of these buttons (based on capacity operation of 4,000,000 units per year) are: Direct material Direct labor Variable factory overhead Fixed factory overhead Total $0.08 0.06 0.04 0.07 $0.25 Fixed factory overhead includes $100,000 of depreciation on equipment for which there is no alternative use and no market value. The balance of the fixed factory overhead pertains to the salary of the production supervisor, Lilith Walker. Lilith has a lifetime employment contract and the skills that could be used to replace Maya Harmony, the supervisor of floor maintenance for buttons. Maya draws a salary of $50,000 per year. Bandit Buttons Co. recently approached Handsome Jack with an offer to supply all required buttons for $0.19 per unit. Anticipated sales demand for the coming year will require 4,000,000 fasteners. a. Identify the costs that are relevant in this outsourcing decision. b. What is the total annual advantage or disadvantage (in dollars) of outsourcing the buttons rather than making them? c. What qualitative factors should be considered in making this decision