need help answering with math for question 1 and need help with questions 2 and 3
1. Make-or-Buy Decision. Vail Door manufactures doors. Management is interested in outsourcing production to a reputable company that can supply the doors for $90 per unit. Vail incurs the following: If production is outsourced, all variable production costs and equipment lease costs will be eliminated. The production supervisor's salary cost will remain regardless of the decision to outsource or to produce internally because the supervisor recently signed a long-term contract with the company. The factory lease has five years remaining and cannot be terminated before then. Perform differential analysis. Assume making the product is Alternative 1, and outsourcing is Alternative 2. 1. Which alternative is best? Explain. 2. Assume Vail can lease the current space for $30,000 per year if production of doors is outsourced. The subleasing company would pay for insurance. 3. Give 2 Qualitative factors that may influence your decision 1. Make-or-Buy Decision. Vail Door manufactures doors. Management is interested in outsourcing production to a reputable company that can supply the doors for $90 per unit. Vail incurs the following: If production is outsourced, all variable production costs and equipment lease costs will be eliminated. The production supervisor's salary cost will remain regardless of the decision to outsource or to produce internally because the supervisor recently signed a long-term contract with the company. The factory lease has five years remaining and cannot be terminated before then. Perform differential analysis. Assume making the product is Alternative 1, and outsourcing is Alternative 2. 1. Which alternative is best? Explain. 2. Assume Vail can lease the current space for $30,000 per year if production of doors is outsourced. The subleasing company would pay for insurance. 3. Give 2 Qualitative factors that may influence your decision