Chris Co. is currently producing 1,000 surfboards annually. A supplier has offered to produce the...
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Chris Co. is currently producing 1,000 surfboards annually. A supplier has offered to produce the boards for $300 each. Chris Co. incurs unit-level costs of $280 per surfboard. Chris also spends $25,000 on product design each year and incurs $50,000 of facility-level costs. What is the effect on profit if Chris Co. outsources the surfboards?
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