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Calkist Mfg . is a multiple product manufacturer. One product line consists of motors for lawnmowers, and the company produces three different models. Calkist is

Calkist Mfg. is a multiple product manufacturer. One product line consists of motors for lawnmowers, and the company produces three different models. Calkist is currently considering a proposal from a supplier who wants to sell the company blades for the lawnmower motor line. The company currently produces all the blades it requires. In order to meet customers' needs, Calkist currently produces three different blades for each motor model (nine different blades). The supplier is offering to provide five varieties of blades for each model. A total of 15 blades would considerably expand the variety of cutting ability for the motors available to customers. The supplier would charge Calkist $25 per blade, regardless of blade type.
Calkist Mfg. is a multiple product manufacturer. One product line consists of motors for lawnmowers, and the company produces three different models.
Calkist is currently considering a proposal from a supplier who wants to sell the company blades for the lawnmower motor line. The company currently produces all the blades it requires. In order to meet customers' needs, Calkist currently produces three different blades for each motor model (nine different blades). The supplier is offering to provide five varieties of blades for each model. A total of 15 blades would considerably expand the variety of cutting ability for the motors available to customers. The supplier would charge Calkist $25 per blade, regardless of blade type.
For the coming year Calkist has projected the costs of its own blade production as follows (based on projected volume of 10,000 units):
\table[[Direct materials,$75,000
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