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Alternate problen: D Sailboard Enterprises, a wind sailing board manufacturer, is currently operating at 70% capacity and producing about 20,000 units a year. To use

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Alternate problen: D Sailboard Enterprises, a wind sailing board manufacturer, is currently operating at 70% capacity and producing about 20,000 units a year. To use more capacity, the manager has been considering the research and development department's suggestion that Sailboard manufacture its own sails. Currently Sailboard purchases sails from a supplier at a unit price of $100. Estimates show that Sailbonrd can manufacture its own sails for a $40 direct materials cost and a $32 direct labor cost per unit. The variable factory overhead is $8 per sail. The company's accountants would allocate fixed manufacturing overhead of S30 per sail to the sail production. 1. Should Sailboard Enterprises make or buy the sails? 2. Suppose that Sailboard Enterprises could rent out the part of the factory that would otherwise be used for sail manufacturing for $8,000 a month. How would this affect the decision in (a)

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