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+-:2 ponts Ny Noles Ask Your T nst par unit direct rmateriais $:20 direct labor...

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Accounting

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+-:2 ponts Ny Noles Ask Your T nst par unit direct rmateriais $:20 direct labor $00 Tt you outsource the production ot comprassors (the bury option) in the s shart term, how wll t his chaice attect your costs and protit? First, computc vartabla cccts under MAKE vcrsus BUY If you outsoures (BUY), the Incremental revenue,cons, and prcfit arc: chanyes if you cutsource Tncremental VC Increnental profit Fnter negav amunts with a minus sgn, i.A, 1,0 not,c) Should you o utsourcc? YES utsourcing reduces costs by $5,000 NO autsourcing reducas prott by s5,000

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