Would outsourcing make sense for a manufacturing operation
For the data below, determine whether outsourcing of the particular manufacturing operation makes financial sense:
1. the current variable cost per unit $10.00
2. the current fixed costs in total 100,000
3. the current fixed costs attributed to this product line $60,000
4. the quote from an outside vendor to perform the operation $13.00
5. the anticipated volume of widgets needed is 10,000