Winter Sports makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Winter Sports for $$20$ per pair. Winter Sports needs $120,000$ pairs of poles per period.

Winter Sports can only avoid $$190,000$ of fixed costs if it outsources; the remaining fixed costs are unavoidable. Winter Sports currently has the following costs at a production level of $120,000$ pairs

of poles:

$($Click the icon to view the table.$)$

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?

If the freed capacity could be used to produce ski boots that would provide $$910,000$ of operating income, should Winter Sports outsource ski pole production?

Based on our calculations, the total cost of outsourcing the ski poles and leaving the freed capacity idle is

than the cost to produce the poles in$-$house. Thus, Winter Sports

outsource production because its operating income would

If the freed capacity could be used to produce ski boots that would provide $$910,000$ of operating income, should Winter Sports outsource ski pole production?

Begin by preparing the incremental analysis for outsourcing decision if the freed capacity could be used to produce ski boots that would provide $$910,000$ of operating income. $($Complete all input

fields. Enter a $"0"$ for any zero balances. Use a minus sign or parentheses in the Difference column if the cost to make exceeds the cost to outsource.$)$

If the freed capacity could be used to produce ski boots that would provide $$910,000$ of operating income, Winter Sports

outsource its ski pole production because its operating income

would $].$