1.GreatSports has decided to assess the feasibility of outsourcing a portion of their in-house production. A reputable supplier has bid $.72 per product on 400,000 products over a 3- year period. Shipping will cost a fixed $.007 per unit. Additionally, we must consider the cost of additional quality control at receiving, estimated at $1,667.67 per month and the additional cost associated with ordering, estimated at $8,000 per year.Current manufacturing costs for in-house production include one supervisor at $26,800 per year, one part-time employee at $6,000 per year, direct labor at $0.05 per unit, direct materials at $0.08 per unit, equipment depreciation on a machine that will have no salvage value at the end of 3 years with a current value of $13,200, and overhead allocated to the product at the rate of $260,000 per year.Using total cost analysis, which option is best?A) Remain in-houseB) OutsourceC) It’s a tie! Cost makes no difference2.American Manufacturing Company is evaluating 2 suppliers for component sourcing. After much internal discussion, AMC’s management has determined that the critical factors in choosing suppliers are: quality, delivery, price, and service. Further, management has rated the importance of these factors as .4, .3, .2 and .1 respectively. On a scale of 1 to 5, Supplier A is rated at 5, 3, 3 and 3 respectively. Supplier B’s ratings are 4, 4, 3 and 4. Which supplier has the best weighted score?A) Supplier AB) Supplier BC) Neither, they both have the same weighted score3.Having selected outsourcing as a viable option, Cox Industries must now choose between two competing bids from potential contract manufacturers. Both Blackstone Production and Williams Widgets have made competing offers at similar prices. The summary data for the two contract manufacturers is given below:Performance Dimension