Please see attached file for figures

Make-or-Buy Decision. Ocean Products, Inc., currently manufactures its own surfboards for customers. Management is interested in outsourcing production of these surfboards to a reputable manufacturing company that can supply the surfboards for $80 per unit. Ocean Products, Inc., incurs the following annual production costs to produce 10,000 surfboards internally.

! Make-or-Buy Decision. Ocean Products, Inc., currently manufactures its own surfboards for customers. Management is interested in outsourcing production of these surfboards to a reputable manufacturing company that can supply the surfboards for $80 per unit. Ocean Products, Inc., incurs the following annual production costs to produce 10,000 surfboards internally. If production is outsourced, all variable production costs, factory building and equipment lease costs, and factory insurance 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 Ocean Products, Inc. Required: 1 Perform differential analysis using the format presented in Figure 7.2 \" Make-or-Buy Differential Analysis for Best Boards, Inc.\". Assume making the surfboards internally is Alternative 1, and buying the surfboards from an outside manufacturer is Alternative 2. 2 3 Which alternative is best? Explain. Summarize the result of outsourcing production using the format presented in Figure 7.3 \"Summary of Differential Analysis for Best Boards, Inc.\". 4 Compare the format used in requirement a with that of requirement c