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What happens to revenue in an outsourcing decision? (increase/decreaseochange) in What happens to costs in a special order? (increase/decreaseochange). business will outsource if the in costs is (more/less) than the - in costs. 13. Worldwide Airways is currently making the desserts for all of its first-class, in-flight meals. Here is Worldwide's current cost for the desserts (based on 100,000 desserts): Per Un Relevant Tota! Direct materials $.06 $.06 $ 6,000 Direct labor .03 3,000 Variable overhead .04 4,000 Depreciation of equipment 7,000 Supervisor's salary .05 5,000 Total cost per dessert $.25 $25,000 A Dallas bakery has offered to supply the in-flight desserts for $.21 each. The equipment has no resale value and Worldwide would have no use for the equipment. Worldwide could save approximately $1,000 ($.01 per dessert) on supervisory salaries if the desserts were outsourced to the Dallas bakery. If a cost is relevant, place the amount of the relevant cost in the blank to the right. If it is not relevant, leave the blank empty. Should Worldwide buy the desserts? By how much would Worldwide's income increase/decrease if they bought the desserts? .07 Increase in cost to buy (per unit) Decrease in costs to make (Costs avoided if you buy) Inc (dec) in income outsourcing Number of units Total inc (dec) in income