Business, 22.02.2021 18:30 webbjalia04

Gabriela Manufacturing must decide whether to insource or outsource a new toxic-free miracle carpetcleaner that works with its Miracle Carpet CleaningMachine. If it decides to insource the product, theprocess would incur $300,000 of annual fi xed costs and$1.50 per unit of variable costs. If it is outsourced, a supplierhas off ered to make it for an annual fi xed cost of $120,000and a variable cost of $2.25 per unit in variable costs.(a) Given these two alternatives, determine theindiff erence point (where total costs are equal).(b) If the expected demand for the new miracle cleaneris 300,000 units. Required:
What would you recommend that Gabriela Manufacturing do?

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