Question 11

1. Quiche & Tell, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $15,000 for 3,000 quiches. The costs per quiche to make this product include:

   	Cost per Quiche
   Production Manager's Salary	$1
   Direct Labor	$3
   Direct Materials	$3
   Allocated Corporate Overhead	$1

   Should the product be outsourced?

   		Yes
   		No