rk Question 10, T18-3 (similar to) HW Score: 12.15%, 1.22 of 10 points Part 1 of 4 O Points: 0 of 1 Winter Sports makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Winter Sports for $19 per pair. Winter Sports needs 180,000 pairs of poles per period. Winter Sports can only avoid $200,000 of fixed costs if it outsources; the remaining fixed costs are unavoidable. Winter Sports currently has the following costs at a production level of 180,000 pairs of poles: : (Click the icon to view the table.) 1. Should Winter Sports outsource ski pole production if the next best use of the freed capacity is to leave it idle? What effect will outsourcing have on Winter Sports' operating income? 2. If the freed capacity could be used to produce ski boots that would provide $1,086,000 of operating income, should Winter. Sports outsource ski pole production? 1. Should Winter Sports outsource ski pole production if the next best use of the freed capacity is to leave it idle? What effect will outsourcing have on Winter Sports' operating income? Begin by preparing the incremental analysis for outsourcing decision. (Use a minus sign or parentheses in the Difference column if the cost to make exceeds the cost to outsource.) Outsource Ski Incremental Analysis Outsourcing Decisions Make Ski Poles Poles Difference Variable costs: Plus: Fixed costs Total cost of producing 180,000 pairs of polesork Question 10, T18-3 (similar to) HW Score: 12.15%, 1.22 of 10 points Part 1 of 4 O Points: 0 of 1 Winter Sports makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Winter Sports for $19 per pair. Winter Sports needs 180,000 pairs of poles per period. Winter Sports can only avoid $200,000 of fixed costs if it outsources; the remaining fixed costs are unavoidable. Winter Sports currently has the following costs at a production level of 180,000 pairs of poles: (Click the icon to view the table.) 1. Should Winter Sports t effect will outsourcing have on Winter Sports' operating income? 2. If the freed capacity co X Data table Winter. Sports outsource ski pole production? Cost per pair 1. Should Winter Sports outso Manufacturing Costs Total Cost (180,000 pairs) ect will outsourcing have on Winter Sports' operating income? Begin by preparing the incren Direct Materials $ 1,260,000 $ 7.00 column if the cost to make exceeds the cost to outsource.) Direct Labor 126,000 0.70 Incremental Analysis Of Variable MOH 918,000 5.10 Variable costs: 1,080,000 6.00 Fixed MOH Plus: Fixed costs $ 3,384,000 $ 18.80 Total Total cost of producing 180 Print Done