Spring Inc. packages musical instrument repair kits for university music programs. Cost data for this packaging process is as follows: Packaging materials (e.g., boxes and bubble-wrap) Packaging direct labor Indirect materials (e.g., tape, labels) Packaging supervision (variable) Other fixed manufacturing overhead Total packaging cost An outside supplier has offered to do all the packaging for a price of $4 per unit for all packaging-related activities if Spring signs a one-year contract for a minimum of 147,100 units produced each year. Spring could use the factory space now occupied by the packaging process to expand production to another product line. This expansion is expected to generate an additional S175,000 in profit per year. 3. What are the total relevant costs of continuing to package the products internally; that is, which of the annual costs are avoidable if Spring outsources the packaging process? What is the net cost from outsourcing the packaging process after considering the profit from expanding production of another product? 5. March Madness Company is under a time constraint and can only fully produce one product this period. Which of the following products should be fully produced to yield the highest profits for the company? A) Product A has a contribution margin of $20 and it takes 2 machine hours to complete each product, or B) Product B has a contribution margin of $30 and it takes 2 machine hours to complete each product, or C) Product C has a contribution margin of $50 and it takes 4 machine hours to complete each product