Illustrate what would you recommend which gabriela manufact

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Q. Gabriela Manufacturing must decide whether to insource or outsource a new toxic-free miracle carpet cleaner which works with its Miracle Carpet Cleaning Machine. If it decides to insource product, process would incur $300,000 of annual fixed costs also $1.50 per unit of variable costs. If it is outsourced, a supplier has offered to make it for an annual fixed cost of $200,000 also a variable cost of $1.80 per unit in variable costs. If expected demand for new miracle cleaner is 300,000 units, illustrate what would you recommend which Gabriela Manufacturing do?

Reference no: EM1376693

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