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Hagar Containers manufactures a variety of boxes used for packaging, Sales of its Model A20 box have increased significantly to a total of 500,000 A20 boxes. Hagar has enough existing production capacity to make all of the boxes it needs. The variable cost of making each A20 box is SO.80. By outsourcing the manufacture of these A20 boxes, Hagar can reduce its current fixed costs by S125,000. There is no alternative use for the factory space freed up through outsourcing, so it will Just remain idle What is the maximum Hagar will pay per Model A20 box to outsource production of this box? Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit. Cost if making A20 boxes Variable costs + Fixed costs Cost if outsourcing A20 boxes Variable costs + Fixed costs Using the basic formula you determined above solve for the indifferent outsourcing cost per unit. The maximum Hagar will pay to oulsource production of its A20 boxes is Help me solve this Video Get more help Clear all Check