Kane company is considering outsourcing a key component

sourcing LQ1, 2,4 3-39 Make-or-buy Kane Company is considering outsourcing a key component. A reliable supplier has quoted a price of $75.50 per unit. The following costs of the component when manufactured in-house are expressed on a per unit basis: Variable Direct materials $25.50 Direct labor 15.00 Variable overhead 28.50 not relevant Fixed overhead a 10.00 (obliged) Total costs $79.00 Required (a) What assumptions need to be made about the behavior of overhead costs for Kane in order to analyze the outsourcing decision? (b) Should Kane Company outsource the component? ? (c) What other factors are relevant for this decision? quality - Delivery