Make$-$or$-$Buy Decision. Ceramic Bowls, Inc., currently manufactures ceramic bowls. Management is

interested in outsourcing production to a reputable manufacturing company that can supply the bowls

for $$2$ per unit. Ceramic Bowls, Inc., produces $100,000$ bowls each year. Variable production costs are $$0\mathrm{.}80$

and annual fixed costs are $$150,000.$ If production is outsourced, all variable costs and $30$ percent of

annual fixed costs will be eliminated.

Perform differential analysis using the format presented in Figure $7\mathrm{.}2$ and explain which alternative is best,

Alternative $1($producing internally$)$ or Alternative $2($outsourcing$).$