Kites Unlimited uses 50,000 plastic inserts annually to complete their

kites. They can be purchased externally for $.25. Current per unit

production costs for the inserts are:

Direct Material	$ .03
Direct Labor	.05
Variable Overhead	.15
Total Common Fixed Overhead	$10,000

Question 47 (1 point)

Should the inserts be made internally or purchased externally

Question 47 options:

	internally
	externally

Question 48 (1 point)

The difference in net income is:

Question 48 options:

Question 49 (1 point)

Suppose that one-half of the fixed costs incurred by Kites Unlimited could be eliminated if the company outsources the inserts. Should the inserts be made internally or purchased externally?

Question 49 options:

	internally
	externally

Question 50 (1 point)

The difference in net income is:

Question 50 options:

Question 51 (1 point)

Saved

Identify two qualitative factors that should be considered in the decision