20. At what volume would I 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 PACK 1 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 Pak Pack 10 points Product conta directly traceable to be Dirt materials Direct Labour Variable manufacturing overhead Pixed manufacturing overhead General allocated overhead 52.50 275,000 1.50 165,000 6.30 22,000 35,200 51.200 540,00 80232,34 The full cost of one pack of golf balls is $4.99. Gi has received an offer from an outside supplier to supply any desired quantity of talls 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 of 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 I would be better off making or buying the balls at a projected volume of 10,000 packs (440,000 golf balls) (Round "Per Unit" answers to 2 decimal places) 110.000 pache Make Buy Difference Por Un $ 449 1 2.50 1.50 Purchase ) De mali Dract labour Vai malang over Fed manufacture overed Golfers, Inc. (GI) 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: Per 110,000 Tack Pack Product conta directly traceable to balls Direct materials $2.50 275,000 Direct labour 1.50 165,000 Variable manufacturing overhead 0.20 22,000 Pixed manufacturing overhead 15,200 General allocated overhead 51,700 54,900 140 5 The full cost of one pack of golf balls is $4.99. Gl 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 lensing 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 I would be better of making or buying the balls at a projected volume of 110,000 packs (440,000 golf balls), (Round "Per Unit" answers to 2 decimal place 000 Purchase Directorio Dvetlobou Variable manufacturing overhead Fredacturing overhead Per une 100 18 2.00 150 0:20 110,000 pcs ME Buy 18 271 000 0.00 22.000 052200 Difference 63.000 275,000 88.000 23,000 35200 3. Select the quantitative and/or qualitative factors that I should consider before making the final decision. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Possibility of interruptions in supply, Current price and changes in price Alternative use for facimies freed up Ability to maintain quality of tennis balls. 2 Any about or production issues that may happen Change in management structure 2 Climatic conditions in area where puntated 2-a. At what volume would I be indifferent between making and buying? (Do not round Intermediate calculations and round your final answer to nearest whole number) 16:08 Tendifferent point packs 2-b. What does the indifference point indicate? (Do not round intermediate calculations and round your finat answers to nearest whole number.) will cost morto it will cost more to the quantity ebbes the quants below packs packs