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ASAP it final only 1.30 hour left Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 100,000
ASAP it final only 1.30 hour left
Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 100,000 packs (each consisting of four golf balls). Cost data are as follows: Per 109 wee Packs Pack Product costs directly traceable te balls! Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead General allocated overhead 12.50 $259,999 120 129,900 0.15 15,689 69.000 34 089 $479,000 The full cost of one pack of golf balls is $479. GI has received an offer from an outside supplier to supoly any desired quantity of b at a price of $5.85 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 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 Gl would be better off making or buying the balls at a projected volume of 100.000 packs (400,000 golf balls). (Round "Per Unlt" answers to 2 decimal places.) 100.000 packs Per uit Make Purchase B Difference Diree materials Direct abour Required: 1. Prepare an analysis showing whether Gl would be better off making or buying the balls at a projected volume of 100,000 (400,000 golf balls). (Round "Per Unlt" answers to 2 decimal places.) 100,000 packs Per Unit Make Buy Difference Purchase $ 222.00 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Common costs allocated to this product line Total costs 2-a. At what volume would Gl be indifferent between making and buying? (Do not round Intermediate calculations and ron final answer to nearest whole number.) Indifferent point paoks 2-b. What does the Indifference point Indicate? (Do not round Intermediate calculations and round your linel answers ton whole number.) He will cost more to if the quantity exceeds packs it will cost more to if the quantity is below packs h 3. Select the quantitative and/or qualitative factors that Gl 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 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 gre as Incorrect.) 3 Possibility of interruptions in supply. 3 Current price and changes in price. Alternative use for facilities freed up Ability to maintain quality of tennis balls. Any labour or production issues that may happen. 2 Change in management structure. Climatis conditions in area where plant is situatedStep by Step Solution
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