A company management has developed the following cost figures based on an annual volume of...
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A company management has developed the following cost figures based on an annual volume of 55,000. Supplier Current Company Operations (insourcing) (outsourcing) Overhead, $200,000 Labor, $10.50 per unit Materials, $4.00 per unit Administration, $150,000 unit Purchase price, $19 per unit Administration costs, $50,000 Inspection costs, $80,000 Transportation costs, $3 per 1) Calculate the total cost of each option. Which is cheaper, insourcing or outsourcing with the supplier? 2) How would the results change if the annual volume increases to 100,000 units
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