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1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. 2. Suppose the capacity currently used to make CMCBs will become
1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. 2. Suppose the capacity currently used to make CMCBs will become idle if Sunbeam purchases CMCBs from Marley. On the basis of financial considerations alone, should Sunbeam make CMCBs or buy them from Marley? Show your calculations. 3. Now suppose that if Sunbeam purchases CMCBs from Marley, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Eleanor Corporation. Sunbeam estimates the following incremental revenues and costs from CB3s: \begin{tabular}{ll} Total expected incremental future revenues & $2,300,000 \\ Total expected incremental future costs & $2,435,000 \end{tabular} On the basis of financial considerations alone, should Sunbeam make CMCBs or buy them from Marley? Show your calculations. More info Sunbeam manufactured 11,000 CMCBs in 2020 in 55 batches of 200 each. In 2021, Sunbeam anticipates needing 5,000 CMCBs. The CMCBs would be produced in 50 batches of 100 each. The Marley Corporation has approached Sunbeam about supplying CMCBs to Sunbeam in 2021 at $410 per CMCB on whatever delivery schedule Sunbeam wants. Data table The Sunbeam Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2020 and the expected costs in 2021: (Click the icon to view the costs.) (Click the icon to view the make-versus-buy information.) Read the requirements. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021
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