1.Make-or-Buy Decision.Keyboard, Inc., a manufacturer of pianos, typically sells each of its pianos for $1,480. The cost of manufacturing and marketing one piano at the company's usual monthly volume of 6,000 units is shown below:

Per Unit Total at 6,000 Units Manufacturing costs Variable $ 600 $ 3,600,000 Fixed 240 1,440,000 Total manufacturing $ 840 $5,040,000 Marketing and administrative costs Variable $ 100 $ 600,000 Fixed 280 1,680,000 Total marketing and administrative costs 380 2,280,000 Total cost $ 1,220 $ 7,320,000