-> X C B A Q 179 minutes remaining 6 OF 6 QUESTIONS REMAINING Suggested time : 35 minutes Lysol Inc produces and sells speakers and players. The following information has been collected about the costs related to the systems: ... Selling price per unit S 70 Production costs per unit Direct materials 22 Direct labour 16 Variable overhead N Total fixed overhead $360 000 I Lysol Inc normally produces 25000 of these systems per year. The managers have recently received an offer fr Chinese entity to produce these systems for $48 each. The managers estimate that $260000 of Saguaro's fixed could be eliminated if they accept the offer. Required (a) Which type of non-routine operating decision is involved here? What are the managers' decision option quantitative information ic relevant to the decision? (1 marvelormally produces 25000 of these systems per year. The managers have recently received an offer from a Lysol In. Chinese entity to produce these systems for $48 each. The managers estimate that $260000 of Saguaro's fixed costs could be eliminated if they accept the offer. Required (a) Which type of non-routine operating decision is involved here? Whnat are the managers' decision options? What quantitative information is relevant to the decision? (4 marks) (b) Perform a quantitative analysis for the decision to support your decision.(6 marks) () Under the general decision rule for this tye of decision, what production level is required for Saguaro's managers t be indifferent? (5 marks) (d) List four uncertainties that may affect this decision. (4 marks) Use the editor to format your