Strategic management-Gabriela Manufacturing must decide whether to insource or outsource
Gabriela Manufacturing must decide whether to insource or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to insource the product, the process would incur $320,000 of annual fixed costs and $1.60 per unit of variable costs. If it is outsourced, a supplier has offered to make it for an annual fixed cost of $120,000 and a variable cost of $2.30 per unit in variable costs. (Please round your answers to the nearest whole number, the tolerance is +/-1).
Gabriela Manufacturing must decide whether to insource or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to insource the product, the process would incur $320,000 of annual fixed costs and $1.60 per unit of variable costs. If it is outsourced, a supplier has offered to make it for an annual fixed cost of $120,000 and a variable cost of $2.30 per unit in variable costs. (Please round your answers to the nearest whole number, the tolerance is +/-1).
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