Knowledge Check 01 Delightful, Inc. manufactures and sells electric lamps. The company currently produces all parts in its Oregon factory. One of its vendors has offered to do the packaging for a price of $2 per unit. Delightful's management is now deciding whether to continue to package the product or hire the vendor to do it. What type of decision is the management making? O Insourcing versus outsourcing decision Special-order decision O Keep-or-drop decision O Sell-or-process further decision O Continue-or-discontinue decision Knowledge Check 02 Pinnacle, Inc. produces various computer parts. It produces a mouse model called AnyTouch. Pinnacle has always manufactured all parts internally, but is now considering buying the sensor for this mouse from an external supplier, SenseMore, Inc. It costs Pinnacle $10 ($7 variable and $3 fixed costs) to produce the sensor in-house. SenseMore is offering to sell the sensor at $9. Pinnacle can avoid all of its variable costs but none of its fixed costs by choosing to outsource. If Pinnacle decides to outsource, it can use its production facility to produce other parts. Which of the following are the relevant factors in this decision? O Variable costs of producing the sensors O Fixed costs of producing the sensors O Revenues generated by selling AnyTouch O Cost of equipment used to manufacture the sensors