up through outsourcing, so it will just remain idle. What is the maximum Hagar will pay per Model A20 box to outsource production of this box? Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit. Using the basic formula you determined above solve for the indifferent outsourcing cost per unit. The maximum Hagar will pay to outsource production of its A20 boxes is Hagar would be indifferent between outsourcing and making the A20 boxes if the outsourcing price was per A20 box. Therefore, Hagar will only be willing to pay per A20 box if outsourcing