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Business, 29.11.2020 04:10 shifaxoxoxo

Chris Co. produces sports equipment and is currently producing 1,000 surfboards annually. A supplier has offered to produce the boards for Chris Co. for $300 per board. Chris Co. incurs unit-level costs of $280 per unit. Chris also spends $25,000 on product design each year and incurs $50,000 of facility-level costs. Based on your quantitative analysis, should Chris Co. outsource the board? What is the effect on profit?

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