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, but will incur shipping costs. Use the information below to detemine whether Dough, Re, Mi Inc. should outsource or not. Data Units Per unit Relevant? Sales price per unit 5,750 111.00 Direct materials per unit 24.00 Direct labor per unit 18.00 14.00 Variable manufacturing overhead Fixed manufacturing overheMOH) : per unit per month 28.00 Avoidable fixed MOH per month n/a Unavoidable fixed MOH per month n/a Sales commissions per unit 3.00 Advertising costs per month 1.80 Purchase price of outsourced product per unit 59.00 Shipping costs of outsourced product per unit 1.00 Costs per unit Incremental analysis Manufacture Outsource Manuf Variable costs Enter "-0" in the cell for any cost not relevant to the decision. Direct materials n/a Direct labor n/a n/a Variable manufacturing overhead Purchase price n/a Shipping costs n/a Instructions A M6 Project +

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