Astro Company designs, manufactures and sells toy rockets. The company does not design, manufacture, or sell other products. Astro could fully source its rocket inventory from a separate manufacturing company. If it did, Astro would continue to design the rockets and it would also continue to control all distribution, selling, and marketing activities. Astro's president wants to meet next week to discuss the idea of outsourcing its manufacturing and wants you to analyze the impact. Now that you understand the question, you need to master the data. Of the following twelve items appearing on the income statement, (a) which are relevant and (b) which are not relevant to this decision
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