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Pro-Ski makes downhill ski equipmentAssume that Atomic has offered to produce ski poles for ProSki for $17 per pairPro Ski needs 160,000 pairs of poles
Pro-Ski makes downhill ski equipmentAssume that Atomic has offered to produce ski poles for ProSki for $17 per pairPro Ski needs 160,000 pairs of poles per period Pro-Ski can only avoid 130,000 of fixed costs if outsources the remaining fixed costs are unavoidable Pro-Ski currently has the following costs at a production level of 160,00 pairs of poles Click the icon to view the table) 1. Should Pro outsource ski pole production if the next best use of the freed capacity is to leave it idle? What effect will outsourcing have on Pro-operating income? the freed capacity could be used to produce ski boots that would provide $ 984,000 of operating income , should ProSki outsource pole production?
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