These questions relate to the Integrated Analytics Case: Bene Petit. Select the appropriate eBook link to open the Case Overview, Case Background, and Part 3: Managerial Decision Making. The following table summarizes the operating results for Bene Petit's first year of operations: Bene Petit First Year Operating Data: Single (1 serving) Dual (2 servings) Family (4 Total servings) 3,000 5,000 12,000 20,000 3,000 10,000 48,000 61,000 750 1,250 3,000 5,000 3,000 5,000 12,000 20,000 6 10 24 40 Customer Meals Sold Total Customer Servings Customer Orders (Average = 4 meals per order) Number of Donated Meals (1 per customer meal) Number of Donated Deliveries (500 meals per delivery) Additional information about selling prices, variable costs, and fixed costs is summarized below: The average sales price for customer meals is $5 per serving. The average direct materials (ingredients) cost of customer meals is $1 per serving. Direct labor costs average $0.75 per customer meal. Variable manufacturing overhead costs are applied at a rate equal to 60% of direct labor. The delivery expense for customer meals is $2 per customer order. The incremental cost of producing the donated meals is $1.25 per meal. The delivery expense for donated meals is $125 per delivery to community partners. The following fixed costs are allocated to customer meals based on total sales revenue: Fixed manufacturing overhead costs are $75,000 per year. Fixed selling expenses are $29,000 per year. 9. Bene Petit is currently paying employees to deliver the meal boxes to customers' doorsteps using a small fleet of delivery trucks. As the business expands, Taylor is trying to decide whether she should outsource to a private delivery company such as FedEx or UPS. The following additional details are available: Variable delivery expenses for fuel and driver wages are $2 per customer order. Fixed delivery expenses for insurance and maintenance on delivery trucks are currently $12,000 per year. To expand delivery capacity beyond 7,500 deliveries per year, Bene Petit would need to invest in additional delivery trucks, which would increase fixed delivery expenses to $30,000 per year. This would provide the capacity to make up to 15,000 deliveries per year. The contract rate for third party logistics providers such as UPS and FedEx is $5 per delivery. Use the Tableau dashboard below to answer the questions. ! Required information Cost Insource $70K $60K $50K $40K $30K $20K $10K $OK | 1K 2K $10K $9K Outsource 34 3K 4K 5K SE HE 6K 7K 8K 48 9K 10K 11K 12K 13K 14K 15K S < Prev 60 61 of 83 Next > a. At the current volume of 5,000 orders per year, what are the incremental savings from insourcing or outsourcing? Incremental savings in favor of insourcing b. If Bene Petit expects demand to stabilize at about 8,000 orders per year, what will the incremental savings from insourcing or outsourcing be? Incremental savings in favor of outsourcing Required information 10 c. If Bene Petit expects demand to increase beyond 8,000 orders per year, at what point will they be indifferent toward insourcing versus outsourcing? Indifferent point orders ok ht ences d. If Bene Petit expects to sell 13,000 orders per year, what will the incremental savings from insourcing or outsourcing be? Incremental savings $ 9,000 in favor of insourcing