Case study 1_GROUP3_ACCT1116 W... Q Search File Home Insert Formulas Data Review View Help Open in Desktop App Tell me what you wan Dv v Arial 11 V B I v v Av... Merge General A7 123456 fx Nameless is deciding whether to make or buy scrunchies. The per unit costs are shown below for 18,000 scrunchies which is A B C D E F Any work required in an Appendix must be done in the blue boxes. Please read the narrative carefully to see what Elliot is requesting. 5 Appendix II Nameless is deciding whether to make or buy scrunchies. The per unit costs are shown below for 18,000 scrunchies which is the number that Nameless would either make or buy. Fixed manufacturing costs associated with making the scrunchie are $14,000. These would drop to $8,000 if the scrunchies were bought. 7 8 Number of units Purchase price 18,000 $ 4.54 10 Direct labour $ 1.94 11 Direct materials $ 1.10 12 Variable manufacturing costs $ 0.97 13 14 Hint! See illustration 7.6 on page 282 for an example of the completed table below. 15 Make Buy Net income increase(decrease) 16 Direct materials 17 Direct labour 18 Variable manufacturing costs 19 20 Fixed manufacturing costs 21 Purchase Price 22 Total annual cost 23 24 25 26 27 28 29 30 31 32 33 34 35 G H Hint! Remember that Elliot is not a accountant as such you not only want to tell her what Nameless should do (make or buy), but also how the costs factored in to your decision. Appendix Appendix II Appendix III Appendix IV Appendix V + ED Overview Org chart Calculation Mode: Automatic Workbook Statistics Type here to search