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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.

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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 Tiri Alte 11 Total $20,000 Direct Materials Per Unit $2.00 Direct Labor 10,000 1.00 0.50 1.50 6.00 Unit-related overhead Bacterial related overhead Facilities sustaining overhead Unit-related selling expenses Facilities sustaining administrative Total 5.000 15,000 60.000 3,000 25,000 $138.000 10.30 2.50 $13.80 A supplier has offered to provide Outsource with one of the parts it needs for $1.40 per unit. # 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. 1. Using differential analysis, what is the relevant cost of the "make" alternative It Outsourcing Inc. continues to make the part needed? (6 points) Altem 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 1 Ho Total Per-Unit Direct Materials $20,000 $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. 2. Using differential analysis, what if the relevant cost of the "buy alternative if Outsourcing Inc, buys the part needed from the supplier? (8 points)

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