T18-3 (similar to) Question Help Winter Fun makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Winter Fun for $19 per pair. Winter Fun needs 160.000 pairs of poles per period. Winter Fun can only avoid $160,000 of fixed costs if it outsources; the remaining fixed costs are unavoidable. Winter Fur currently has the following costs at a production level of 160,000 pairs of poles: : (Click the icon to view the table.) 1. Should Winter Fun 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 Fun's operating income? If the freed capacity could be used to produce ski boots that would provide $1,228,000 of operating income, should Winter Fun outsource ski pole production? 2. 1. Should Winter Fun 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 Fun'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.) Outsource Ski Incremental Analysis Outsourcing Decisions Make Ski Poles Poles Difference Variable costs: 0 Data Table Plus: Fixed costs Total cost of producing 160,000 pairs of poles Manufacturing Costs Direct Materials Direct Labor Variable MOH Fixed MOH Cost per pair Total Cost (160,000 pairs) S 960.000 $ 6.00 112,000 0.70 800,000 5.00 960,000 6.00 S 2,832,000 $ 17.70 Total Print Done Enter any number in the edit fields and then click Check Answer. ? parts 3 remaining Clear All Check