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Use the accompanying outsourcing decision data to compute the cost of in-house manufacturing and outsourcing for the following levels of demand: 800, 900, 1,200, 1,500.

Use the accompanying outsourcing decision data to compute the cost of in-house manufacturing and outsourcing for the following levels of demand:

800,

900,

1,200,

1,500.

Use this information to set up a payoff table for the decision problem.

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Click here to view the outsourcing decision data.

Complete the payoff table.

(Simplify your answers.)

Demand Outcome

Decision

800

900

1,200

1,500

Manufacture

$nothing

$nothing

$nothing

$nothing

Outsource

$nothing

$nothing

$nothing

$nothing

Manufactured In-House Fixed Cost $49,000 Unit Variable Cost $120 Purchased from Supplier Unit Cost $170

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