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Outsosrcian Rangeley mow asakes skis Assume that a company has offered to produce skis for Rangeley enow for $900 per pair of skis. Rangeley gnow
Outsosrcian Rangeley mow asakes skis Assume that a company has offered to produce skis for Rangeley enow for $900 per pair of skis. Rangeley gnow needs 3,000 pairs of skis per period. Rangeley snow can avoid $200,000 of fixed costs if it outsources, the remaining fixed costs are nustoudable. Rangeley snow has the following costs at a production level of 3,000 skis 1. Should Rangeley snow oatwoaree ski production if the next best use of the freed capacity is to do nothing and leave it idle. What effect will outsourcing have on Rangeley snow's operating tacome? 2. If the freed capacity is beit used to produce snowboards that would provide $2,000,000 of operating uncome, thouid Raggeley snow outsource ski production
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