Boston Exemcutive, Inc., produces executive limousines and currently manufactures the mini-bar inset at these costs.

The company received an offer from Elite Mini-Bars to produce the insets for $2,090 per unit and supply 900 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

reassianed 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

Cost per Unit Variable costs: Direct material $960 Direct labor 640 Variable overhead 290 Total variable costs $1,890 Fixed costs: Depreciation of equipment $490 Depreciation of building 190 Supervisors salaries 300 Total fixed costs $980 Total cost $2,870 The special equipment cannot bed and has ne market value. However, the spaced the mini-bar reduction can be used by a troction group that will lease it for $55.000 per ye A. Calculate the differential cost of mini bar ist. If an amount or does not entry, leave it blank Cost of Making 900 Bar Inserts Cost of Buying 900 Bar Inserts Differential Cost (Savinus) Variable costs Direct material Direct labor Variable overhead Fixed Costs Equipment depreciation Building depredation Supervisor stories DIO Other Cost Savings Lased space Cost of buying bar inserts homo Total cost B. Should the company make or buy the minibarin