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1 Golfers, Inc. (Gl) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 110,000 packs (each consisting of four golf

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1 Golfers, Inc. (Gl) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 110,000 packs (each consisting of four golf balls). Cost data are as follows 110,000 Peek Paeka Product conta directly traceable to balls Direct materials $2.50 225.000 Direct labour 1.50 165,000 Variable manaacturing overhead 0.26 22.000 Fixed manufacturing overhead 35,200 General allocated overhead 51.700 548,900 10 points 02:52:24 The full cost of one pack of golf balls is $499. Gi has received an offer from an outside supplier to supply any desired quantity of balls at a price of $5.80 per pack of four golf balls. The cost accounting department has provided the following information: a. The direct fixed manufacturing overhead is the cost of leasing the machine that stamps out the balls. The machine can produce a maximum of 500,000 balls per year. If the balls are bought the machine will no longer be needed. b. No other costs will be affected Required: 1. Prepare an analysis showing whether Gl would be better off making or buying the balls at a projected volume of 110,000 packa 1440 000 golf balls). Round "Per Unith answers to 2 decimal places.) 2. At what volume would be indifferent between making and buying? (Do not round Intermediate calculations and round your final anwer to nearest whole number) packs 2. What does the indifference point indicate? (Do not round Intermediate calculations and round your final answers to nearest packs Packs

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