ASST en LakeMSentiniai cakeAssignmentsessionLocator H Boston Exemcutive, Inc., produces executive limousines and currently manufactures the mini-bar inset at these costs: Cost per Unit Variable costs: Direct material $940 Direct labor 640 Variable overhead 310 Total variable costs $1,890 Fixed costs: $490 210 Depreciation of equipment Depreciation of building Supervisors salaries Total fixed costs 300 $1,000 Total cost $2,890 The company received an offer from Elite Mini-Bars to produce the insets for $2,090 per unit and supply 1,100 mini-bars for the coming year's estimated production. If the company accepts this offer and shuts down production of this part of the business, production workers and supervisors will be reassigned to other areas. Assume that for the short-term decision-making process demonstrated in this problem, the company's total labor costs (direct labor and supervisor salaries) will remain the same if the bar Inserts are purchased. The specialized equipment cannot be used and has no market value. However, the space occupied by the mini-bar production can be used by a different production group that will lease it for $56,000 per year. A. Calculate the differential cost of mini-bar insert. If an amount box does not require an entry, leave it blank. Cost of Making Cost of Buying Check My Work Previous Next > All work saved. Email Instructor Save and Exit Submit Assignment for Grading A. Calculate the differential cost of mini-bar insert. If an amount box does not require an entry, leave it blank Cost of Making 1,100 Bar Inserts Cost of Buying 1,100 Bar Inserts Variable Costs Direct material Direct labor Variable overhead Fixed Costs Equipment depreciation Building depreciation Supervisor salaries Other Cost Savings Leased space Cost of buying bar inserts Total cost $ B. Should the company make or buy the mini-bar insert? Buy Feedback Check My Work