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packaging. Sales of its Model A20 box have increased significantly to a total of 470,000 A20 boxes. Hoffman has enough existing production capacity to make

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packaging. Sales of its Model A20 box have increased significantly to a total of 470,000 A20 boxes. Hoffman has enough existing production capacity to make all of the boxes it Hoffman Containers manufactures a variety of boxes used utsourcing en it will iust remain h A20 box is $0.85. By outsourcing the manufacture of these A20 boxes, Hoffman can reduce its current fixed costs by $117,500. There is no altemative use for the factory space freed up through outsource production of this box? What is the maximum Hoffman lpay per Model A20 box Begin by identifving the basic formula that is used to determine the indifferent outsourcing cost per unit, Cost if making A20 boxes Cost if outsourcing A20 boxes Using the basic formula you determined above solve for the indifferent outsourcing cost per unit. The maximum Hoffman will pay A20 boxes is $ o outsource production of Hoffman would be indiferent between outsourcing and making the A20 boxes if the outsourcing price was $ per A20 box if outsourcing. per A20 box. Therefore, Hoffman will only be willing to pay Choose from any list or enter any number in the input fields and then continue to the next

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