Safety First makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Safety First for $23 per pair. Safety First needs 140,000 pairs of poles per period. Safety First can only avoid $150,000 of fixed costs if it outsources; the remaining fixed costs are unavoidable. Safety First currently has the following costs at a production level of 140,000 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 First's operating income? 2. If the freed capacity could be used to produce ski boots that would provide $1,632,000 of operating income, should Safety First outsource ski pole production? 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 First's 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.) Incremental Analysis Outsourcing Decisions Make Ski Poles Outsource Ski Poles Difference Variable costs: Plus: Fixed costs Total cost of producing 140,000 pairs of poles