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cannot provide format for #2 and #3 until #1 is completed. The Swanson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards
cannot provide format for #2 and #3 until #1 is completed.
The Swanson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modemIt reports the following cost information about the costs of making CMCBs in 2017 and the expected oosts in 2018: EEE (Click the icon to view the costs) 1. Calculate the total expected manufacturing cost per unil of making CMCBs in 2018. 2. Suppose the capacity currently used to make CMCBs will bacome idle if Swanson purchases CMCBs from Moming. On the basis of financial conskderations alone, should Swanson make CMGBs or buy them from Morning? Show your calculations. 3. Now suppase that if Swanson purchases CMCBs from Morning, its best alternative use of the capacity currently used for Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. CMCBs is to make and sel special circuit boards (CB3s) to the Essence Corporation. Swanson estimates the following incremental reverues and costs from CB3s Total expecled incremental fulure revenues Total expected incremental future costs $2 200,000 $2.450,000 Costs of CMCB Cost per Unit On the basis of financial s alone, should Swanson make CMCBs obuy them from Morning? Show your Direct materials Direct manufacturing labor Variable batch manulacturing costs Fixed manufacturing costs Data Table Print Done Avoidable fiked manufacturing costs Unavoidable fixed manufacturing costs Current Costs in 2017 Expected Costs in 2018 Total manufacturing costs Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labor cost per CMCB Variable manufachuring cost per batch for setups, materials handing, and quality contral 200 S 175 27 More Info 2,000 1,500 Swanson manufactured 4,000 CMCBs in 2017 in 50 batches of 80 each. In 2018. Swanson antic pates needing 9,000 CMCBs. The CMCBs would be produced in 90 batches of 100 each. The Morning Corporation has approached Swanson about supplying CMCBs to Swanson in 2018 at $270 per CMCB on whatever delivery schedule Swanson wants Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannat be avoided ewen if CMCBs are not made 280,000 495,000 PrintDone 520,000 900,000Step by Step Solution
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