Part 1. Outsourcing Dough, Re, Mi Inc. sells many different types of cookie dough. The company is deciding whether to continue making its own dough or to outsource. If the company outsources, they will eliminate all of the variable overhead and 30% of the fixed manufacturing overhead. Use the information below to determine whether Dough, Re, Mi Inc. should outsource or not. Units 4,950 $ Per unit 107.00 21.00 18.00 15.00 21.00 Relevant? No Yes Yes No Data Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (MOH) : Avoidable fixed MOH Unavoidable fixed MOH Sales commissions Advertising costs Purchase price of outsourced product Shipping costs of outsourced product per unit per unit per unit per unit per month per month per month per unit per month per unit per unit Yes Yes No 4.00 1.60 59.00 2.00 No Yes Yes Costs per unit Manufactures Outsource Enter "=0" in the cell for any cost not relevant to the decision. Incremental analysis Variable costs Direct materials Direct labor Variable manufacturing overhead Purchase price Shipping costs Sales commissions Total variable costs Fixed costs Fixed manufacturing overhead Advertising Total fixed costs Incremental cost Should Dough, Re, Mi Inc. manufacture or outsource its dough? If Dough, Re, Mi manufactures its own dough, what would its operating income be? If Dough, Re, Mi outsources its dough, what would its operating income be