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The Faded Fabric Compary is attempting to decide whether they should continue making their product perheps outsource it to a local vendor. Fadod s variable
The Faded Fabric Compary is attempting to decide whether they should continue making their product perheps outsource it to a local vendor. Fadod s variable cost per unit are $5 and their total cost per unit is $7,50. If a vendor offers to make ther product for $4.00 per unit and the fleed costs are avoidable, should Faded outsource the product? No, because the fived costs are avoidable. Yes, beceuse the total cost per unit is more than the outsource cost. Yes, because the variable costs per unit exceed the outsource price per unit. No, because the outsource coat is less than variable costs
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