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Insert your answers in the gray-shaded cells. If an answer is incorrect, the word wrong will appear. 17.n Outsourcing Glass Tech manufactures fiberglass housings for
Insert your answers in the gray-shaded cells. If an answer is incorrect, the word "wrong" will appear. 17.n Outsourcing Glass Tech manufactures fiberglass housings for portable generators. One part of the housing is a metal latch. Currently, the company produces the 120,000 metal latch units required annually. Company management is considering purchasing the latch from an external vendor. The following data are available for making the decision: a. Assuming that all of Glass Tech's internal production costs are avoidable if the company purchases rather than makes the latch, what would be the net annual cost advantage to purchasing the latches? b. Assume that some of Glass Tech's fixed overhead costs could not be avoided if it purchases rather than makes the latches. How much of the fixed overhead must be avoidable for the company to be indifferent as to making or buying the latches
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