Update ork Question 10, TI8-3 (similar to) HW Score: 67.86%, 6.79 of 10 points Part 1 of 4 * Points: 0 of 1 Save Winter Sports makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Winter Sports for $19 per pair. Winter Sports needs 180,000 pairs of poles per period. Winter Sports can only avoid $200,000 of fixed costs if it outsources; the remaining fixed costs are unavoidable. Winter Sports currently has the following costs at a production level of 180,000 pairs of poles: (Click the icon to view the table.) 1. Should Winter Sports outsource ski pole production if the next best use of the freed capacity is to leave it idle? What effect will outsourcing have on Winter Sports' operating income? 2. If the freed capacity could be used to produce ski boots that would provide $1,086,000 of operating income, should Winter Sports outsource ski pole production? 1. Should Winter Sports outsource ski pole production if the next best use of the freed capacity is to leave it idle? What effect will outsourcing have on Winter Sports' operating income? Begin by preparing the incremental analysis for outsourcing decision. (Use a minus sign or parentheses in the Difference column if the cost to make exceeds the cost to outsource.) Outsource Ski Incremental Analysis Outsourcing Decisions Make Ski Poles Poles Difference Variable costs: $ 1.116,000 Plus: Fixed costs Total cost of producing 180,000 pairs of polesUpdate ork Question 10, T18-3 (similar to) HW Score: 67.86%, 6.79 of 10 points Part 1 of 4 Points: 0 of 1 Save Winter Sports makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Winter Sports for $19 per pair. Winter Sports needs 180,000 pairs of poles per period. Winter Sports can only avoid $200,000 of fixed costs if it outsources; the remaining fixed costs are unavoidable. Winter Sports currently has the following costs at a production level of 180,000 pairs of poles: (Click the icon to view the table.) is to leave it idle? What effect will outsourcing X Data table perating income, should Winter Sports outsource Cost per pair Manufacturing Costs Total Cost (180,000 pairs) Direct Materials $ 1,260,000 $ 7.00 1. S s to leave it idle? What effect will outsourcing have on V Direct Labor 126,000 0.70 Beg Variable MOH 918,000 5.10 theses in the Difference column if the cost to make exce Fixed MOH 1,080,000 6.00 $ 3,384,000 $ 18.80 Total ference Vari 1.116,000 Plus Total Print Done