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Ultimate Travel Company fabricates automobiles. Each Auto includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows:
Ultimate Travel Company fabricates automobiles. Each Auto includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows: Volume Variable cost per unit Fixed costs 800 units per month $8 per unit $13,000 per month A factory in India has offered to supply Ultimate Travel with ready-made units for a cost of $8 each. Assume that Ultimate Travel's fixed costs are unavoidable, but the company could use the vacated production facilities to earn an additional $5,500 of profit per month. In order to maximize operating income, Ultimate Travel should outsource. True O False
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