A (Click the icon to view the make-versus-buy information.) The Swanson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2017 and the expected costs in 2018: (Click the icon to view the costs.) Read the requirements Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. Requirements Total Manufacturing Manufacturing Costs of CMCB Cost per Unit 170 1. 45 2. Direct materials Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable fixed manufacturing costs 12 3. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018 Suppose the capacity currently used to make CMCBs will become idle if Swanson purchases CMCBs from Manson. On the basis of financial considerations alone, should Swanson make CMCBs or buy them from Manson? Show your calculations Now suppose that if Swanson purchases CMCBs from Manson, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Eleanor Corporation. Swanson estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,400,000 Total expected incremental future costs $2,650,000 On the basis of financial considerations alone, should Swanson make CMCBs or buy them from Manson? Show your calculations 32 Unavoidable fixed manufacturing costs 80 339 Total manufacturing costs Print Done Enter any number in the edit fields and then click Check Answer. i Data Table - Current Costs in 2017 Expected Costs in 2018 $ 165 $ 185 39 45 1,700 1,300 Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labor cost per CMCB Variable manufacturing cost per batch for setups, materials handling, and quality control Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 960,000 40,000 1,080,000 400,000 Print Done i More Info Swanson manufactured 12,000 CMCBs in 2017 in 60 batches of 200 each. In 2018, Swanson anticipates needing 4,000 CMCBs. The CMCBs would be produced in 40 batches of 100 each. The Manson Corporation has approached Swanson about supplying CMCBs to Swanson in 2018 at $280 per CMCB on whatever delivery schedule Swanson wants. Print Done