6-A1 Make or Buy Sunshine State Fruit Company sells premium-quality oranges and other citrus fruits by mail order. Protecting the fruit during shipping is important, so the company has designed and produces ship- ping boxes. The annual cost of 80.000 boxes is $120,000 20,000 Materials Labor Overhead Variable Fixed Total 16,000 60,000 $216,000 Therefore, the cost per box average$2.702 Suppose Weyerhauser submits a bid to supply Sunshine State with boxes for $2.35 per box. Sunshine State must give Weyerhauser the box design specifications, and the boxes will be made according to those specs. 1. How much, if any, would Sunshine Stato save by buying the boxes from Weverhauser? 2. What subjective factors should affect Sunshine State's decision whether to make or buy the boxes? 3. Suppose all the fixed costs represent depreciation on equipment that was purchased for $600,000 and is just about at the end of its 10-year life. New replacement equipment will cost $1 million and is also expected to last 10 years. In this case, how much, if any, would Sunshine State save by buying the boxes from Weyerhauser