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Safety First makes downhilil ski equipment. Assume that Atomic has offered to produce ski poles for Safety First for $16 per pair. Safety First needs

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Safety First makes downhilil ski equipment. Assume that Atomic has offered to produce ski poles for Safety First for $16 per pair. Safety First needs 190,000 pairs of poles per period. Safety First can only avoid $140,000 of foxed costs if it outsourcos; the remaining fixed costs are unavoidablo. Safety First currently has the following costs at a production level of 190,000 pairs of poles: (Click the icon to view the table) 1. Should Safety First outsource ski pole production if the next best use of the freed capacity is to leave it idle? What effect will outsourcing have on Safety Firsts operating income? 2. If the freed capacity could be used to produce ski boots that would provide $449,500 of operating income, should Safety First culsource ski pole production? 1. Should Safety First outsource ski pole production if the next best use of the freed capacity is to leave it ide? What effect will outsourcing have on Sa operating income? Begin by preparing the incremental analysis for outsourcing decision. (Use a minus sign or parentheses in the Difference column if the cost fo make exe: to outsource.) Data table

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