Scenario Analysis #4 Outback Amalgamated {OA) produces machine parts as a contract provider for large manufacturing companies. OA produces two parts, axles and flywheels. The competition is severe among contract producers, and OA's top management realizes how susceptible its market is to cost-cutting competitors. Hence, having a very accurate understanding of costs is important to OA's existence. OA's president, Kanga Roo, has observed that the company's current cost to produce axles is $21.35, and the current ----....... cost to produce gears is $12.36. She indicated to the ./4 - '- controller that she suspects some difficulties with the cost '-.system because OA is suddenly experiencing axles, but it seems to flywheel market. Ms. Roo is even and converting the manufacturer of extraordinary competition on have a virtual corner on the considering dropping the axle line company to an one-product flywheels. She asked the controller, Q.T. Koala, to Flywheel conduct a thorough cost study and