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Raymax, Corp., estimates it will produce 20,000 units of a part that goes into its final product. It currently produces this part internally, but is

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Raymax, Corp., estimates it will produce 20,000 units of a part that goes into its final product. It currently produces this part internally, but is considering outsourcing this activity. Current internal capacity permits for a maximum of 40,000 units of the part. The production manager has prepared the following information concerning the internal manufacture of 40,000 units of the part: (Click the icon to view the costs.) The fixed overhead of $7 per unit includes a $1.80 per unit allocation for salary paid to a supervisor to oversee production of the part. The fixed costs would not be reduced by outsourcing, except the supervisor would be terminated. Assume that if Raymax outsources, its purchase price from the outsourcer is $20 per unit Read the requirements. Requirement 1. Should Raymax outsource? (Use a minus sign or parentheses to show a net incremental cost.) Assume Raymax outsources the production of its parts Less: Net incremental benefit (cost) Based on the above analysis, Raymax should the production of its parts. they have been manufactured by Raymax. Thus, Max will engage in the special order only if Raymaxdoes not outsource any of its production. Should Raymax accept the special order? (Use a minus sign or parentheses to show a net incremental cost.) Assume Raymax accept the special order Less: Net incremental beneft (cost) Based on the above analysis, Raymax should Choose from an list or enter any number in the input fields and then continue to the next question | the special order

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