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MAKE OR BUY NIKE has been approached by Hickman Laces to outsource the laces for the Speed product line of basketball sneakers. NIKE could buy
MAKE OR BUY NIKE has been approached by Hickman Laces to outsource the laces for the "Speed" product line of basketball sneakers. NIKE could buy the laces from Hickman Laces for $1,500,000. Information regarding NIKE's cost to produce the laces in-house is provided below. If NIKE outsources, it can avoid $250,000 of fixed cost. What is the change in Net Operating Income if NIKE buys (outsources) the laces for its Speed basketball sneakers? Thus, should NIKE outsource or continue to make the laces in-house DM DL -variable -Fixed $375,000.00 300,000.00 $450,000.00 $350,000.00 $1,475,000.00 Change in NOI $ Mark an "X" to indicate whether NIKE sh. Outsourse OR Continue to Make in-house
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