Make-or-Buy Decision. Cool Company LLC currently manufactures skateboards. Management is interested in outsourcing production of the skateboards to a reputable manufacturing company that can supply the skateboards for $90 per unit. Cool Company LLC incurs the following annual production costs to produce 3,000 skateboards internally Variable Production Cost Direct Materials Direct Labour Manufacturing Overhead Fixed Production Costs Factory lease Equipment lease Factory Insurance Production Supervisor's Salary Total Production cost Per Unit $30 $15 $20 to Total Annual Cost at 3000 units $90,000 $45,000 $60,000 $80,000 $40,000 $25,000 $90,000 $430,000

Make-or-Buy Decision. Cool Company LLC currently manufactures skateboards. Management is interested in outsourcing production of the skateboards to a reputable manufacturing