3 McVay Industries (M) produces ice cream supplies including bowls, scoops and shake makers Mi made 5905,000 of pre-tax profit last year. 4 They are looking for ways to improve profitability and are considering outsourcing production of their shake makers. Juan Hernandez, the controller, compiled the following information A Bowls Scoops Shake Makers TOTAL Units Manufactured and sold 2,000,000 500,000 100,000 DM per unit 50.40 $1.25 $5.00 10 DL per unit 50.10 50.50 34.00 " VMOH per unit $0.15 50.25 $5.00 12 Direct FMOH per unit (based on currer $0.10 50.25 $1.00 33 Common FMOH per unit (based on cui $0.30 $0.25 $4.00 14 Total Cost per unit $1.05 52.50 $19.00 15 Selling Price $2,00 $4.00 $25.00 18 Gross Profit per Unit 50.95 51.50 $6.00 17 18 Total Sales $4,000,000 $2,000,000 $2,500,000 $8,500,000 19 Total COGS $2,100,000 $1,250,000 $1,900,000 $5,250,000 20 Total Gross Profit $1,900,000 $750,000 $600,000 $1,250,000 21 Total Variable (selling) costs (200000) (100000) (125000) (425000) 20 SG&A Foed Costs-Direct (400000) (200000) (100000) (700000) 39 SG&A Food Costs-Common (650000) (300000) 1240000) (1220000) 24 Pre-Tax Profit 5620,000 $150,000 $135,000 $905,000 If the shake maker is outsourced, the company would have idle capacity (that means no additional fixed costs are needed) H 27 and could produce and sell an additional 150,000 bowls for the same selling price of 52 per bowl 20 PM Question 21 What is the maximum amount Mi should pay for the shake maker from an independent supplier (price per unit) to be no worse off financially? Show your work Question 2: if McVay Industries stops making a scoops and all shake makers, and makes and sells 3,000,000 bowls, what is the new Total Pre-Tax Pront