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Use the following information to answer Question 1 through Question 6. Outsourcing Inc., currently produces all the parts it needs for its one product--- Product

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Use the following information to answer Question 1 through Question 6. Outsourcing Inc., currently produces all the parts it needs for its one product--- Product A. The following information has been gathered when 10,000 units of Product A were made. Total Per-Unit Direct Materials $20,000 $2.00 Direct Labor 10,000 1.00 0,50 60.000 6.00 10.30 $13.80 Unit-related overhead 5,000 Bacterial-related overhead 15,000 1.50 Facilities-sustaining overhead Unit-related selling expenses 3,000 Facilities-sustaining administrative 25,000 2.50 Total $138,000 A supplier has offered to provide Outsource with one of the parts it needs for $1.40 per unit. If Outsource accepts the supplier's offer, its direct materials cost will decrease by 30%, Its direct labor cost will decrease by 40%, and its unit-related overhead will decrease by 20%. No other costs will change. 3. Outsourcing Inc. could use the released space to prototype a new product Product B, which is expected to generate an additional income of $2,000. What is the relevant cost of the "make" alternative if Outsourcing Inc. uses the space to prototype Product B? (4 points) Use the following information to answer Question 1 through Question 6. Outsourcing Inc., currently produces all the parts it needs for its one product-Product A. The following information has been gathered when 10,000 units of Product A were made. Per-Unit Total $20,000 Direct Materials $2.00 Direct Labor 10,000 1.00 Unit-related overhead 5,000 0.50 Bacterial-related overhead 15,000 1.50 Facilities sustaining overhead 60.000 6.00 Unit-related selling expenses 3,000 0.30 Facilities-sustaining administrative 25,000 2.50 Total $138,000 $13.80 A supplier has offered to provide Outsource with one of the parts it needs for $1.40 per unit. If Outsource accepts the supplier's offer, its direct materials cost will decrease by 30%, its direct labor cost will decrease by 40%, and its unit-related overhead will decrease by 20%. No other costs will change. 4. Outsourcing Inc. could use the released space to prototype a new product, Product B, which is expected to generate an additional income of $2,000. What is the relevant cost of the "buy" alternative if Outsourcing Inc. uses the space to prototype Product B? (3 points) Use the following information to answer Question 1 through Question 6. Outsourcing Inc., currently produces all the parts it needs for its one product--- Product A. The following information has been gathered when 10,000 units of Product A were made. Total Per-Unit Direct Materials $20,000 $2.00 Direct Labor 10,000 1.00 0,50 60.000 6.00 10.30 $13.80 Unit-related overhead 5,000 Bacterial-related overhead 15,000 1.50 Facilities-sustaining overhead Unit-related selling expenses 3,000 Facilities-sustaining administrative 25,000 2.50 Total $138,000 A supplier has offered to provide Outsource with one of the parts it needs for $1.40 per unit. If Outsource accepts the supplier's offer, its direct materials cost will decrease by 30%, Its direct labor cost will decrease by 40%, and its unit-related overhead will decrease by 20%. No other costs will change. 3. Outsourcing Inc. could use the released space to prototype a new product Product B, which is expected to generate an additional income of $2,000. What is the relevant cost of the "make" alternative if Outsourcing Inc. uses the space to prototype Product B? (4 points) Use the following information to answer Question 1 through Question 6. Outsourcing Inc., currently produces all the parts it needs for its one product-Product A. The following information has been gathered when 10,000 units of Product A were made. Per-Unit Total $20,000 Direct Materials $2.00 Direct Labor 10,000 1.00 Unit-related overhead 5,000 0.50 Bacterial-related overhead 15,000 1.50 Facilities sustaining overhead 60.000 6.00 Unit-related selling expenses 3,000 0.30 Facilities-sustaining administrative 25,000 2.50 Total $138,000 $13.80 A supplier has offered to provide Outsource with one of the parts it needs for $1.40 per unit. If Outsource accepts the supplier's offer, its direct materials cost will decrease by 30%, its direct labor cost will decrease by 40%, and its unit-related overhead will decrease by 20%. No other costs will change. 4. Outsourcing Inc. could use the released space to prototype a new product, Product B, which is expected to generate an additional income of $2,000. What is the relevant cost of the "buy" alternative if Outsourcing Inc. uses the space to prototype Product B? (3 points)

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