unoz produces a relatively small amount (19,000 units) of the cream and is considering the purchase of the product from an outsid upplier for $5.10 each. If Munoz purchases from the outside supplier, it would continue to sell and distribute the cream under its ow rand name. Munoz's accountant constructed the following profitability analysis: Revenue (19,000 units $12-00) $228,000 Unit-level materials costs (19,000 units.20) Unit-level labor coats (19,000 units $0.70) unit-level overhead costs (19,000 S0.20) Onit-level selling expenses (19,000 $0-40) (22, 800) (13,300 (3,800) 7,600 Contribution margin skin arean prodaotion supervisor'salary Allocated portion of facility-level costs (66,000) (13,200) Prodact-level advertising cost Contribution to coepanyvide incone 146,0 s 55,300 a. Identify the cost items relevant to the make-or-outsource decision. b. What is the avoldable cost per unit if the outsourcing decision Is taken? Should Munoz continue to make the product or buy it from the supplier? c. Suppose that Munoz is able to increase sales by 6,000 units (sales will increase to 25,000 units). Calculate the total avoidable costs. At this level of production, should Munoz make or buy the cream? Complete this question by entering your answers in the tabs below. Required A Required B Required C Identify the cost items relevant to the make-or-outsource decision. MacBook Air 5 6 8 Complete this question by entering your answers in the tabs below. nt Required ARequired B Required C What is the avoidable cost per unit if the outsourcing decision is taken? Should Munoz continue to make t from the supplier? (Round your answer to 2 decimal places.) rences per unit Total avoidable costs Should Munoz continue to make the product or buy it from the supplier? MacBook Air F3 2 3 shouncrease sales by 6000 unts z make or sales by 10,000 units sales will make or