Problem 13-25 Effects of the level of production on an outsourcing decision LO 13-3 Rundle Chemical Company makes a variety of cosmetic products, one of which is a skin cream designed to reduce the signs of aging. Rundle produces a relatively small amount (15,000 units) of the cream and is considering the purchase of the product from an outside supplier for $5.40 each. If Rundle purchases from the outside supplier, it would continue to sell and distribute the cream under its own dbrand name. Rundle's accountant constructed the following profitability analysis: Revenue (15,000 units $13.50) $202,500 Unit-level materials costs (15,000 units x $1.40) Unit-level labor costs (15,000 units x $0.80) Unit-level overhead c sts (15,000 x $0.20) Unit-level selling expenses (15,000 x $0.60) (12,000) (3,000) (9,000) 157,500 (53,000) (13,400) (48,000) ces Contribution margin Skin cream production supervisor's salary Allocated portion of facility-level costs Product-level advertising cost Contribution to companywide income $ 43,100 Required a. Identify the cost items relevant to the make-or-outsource decision n2 chould Rundle continue to make the nroduct or buy it from