Read the problem below and answer the questions that follow. This activity is by pair. Submit your answers in word/pdf file. Highlight final answers. === Tardom Manufacturing makes Bluetooth speakers. Tardom currently manufactures the packaging as well. The packaging costs Tardom $2.25 per unit (materials $0.75; labor $0.50; variable overhead $0.35; fixed overhead $0.65), based upon a denominator level of 100,000 units. Tipco has offered to supply the packaging for 100,000 units at $1.85 per unit. If Tardom accepts this offer, all variable costs can be avoided but only $5,000 of the fixed costs can be avoided. 1. Define the concept of relevant costs. Identify which costs are relevant to Tardom's decision to make the packaging or buy it from Tipco. 2. Calculate the effect on Tardom's operating income if it decides to outsource the manufacturing to Tipco, assuming that Tardom has no alternative use of the facilities. 3. Calculate the effect on Tardom's operating income if it decides to outsource the manufacturing to Tipco, assuming that Tardom has alternative use of the packaging facilities which produces a contribution margin of $27,000. 4. What non-financial factors might Tardom consider when deciding whether to make or buy the packaging? Provide at least two.