Chapter 7 Open-Ended Assignment Note: Please put your answers only in the section below the Bald Red sentence at the end of the Required section below. Sandboard Inc. currently produces sandboards. Managment is interested in tourcing production of sandhands to a reputable manufacturing company that can supply the sandboards for $220 per unit Sandboard Inc. incurs the following annual production costs to produce 7,000 sandbandsintally Variable production cost Direct materials Direct labor Manufacturing overhead Fixed productions: Factory building and equipment lease Factory insurance Production supervisor salary Total reduction costs Total Annual For Cost at 7,000 units 140 980,000 7 49,000 17 119,000 200,000 62,000 70,000 1480,000 Outsourcing production climinates all variable production, the production supervisor's salary, and factory insurance costs Factory building and equipment lease costs will remain the same regardless of the decision to outsource or to produce internally Required A. Perform a differential analysis, assuming that making the sandboard internally is one alternative, and buying the sandbound from an outside manufacturer is the other amative. B. Explain which alternative is best and why. Your answers to this open-ended assignment should be placed in the space below this line. A B Cost to buy from utode Direct materials Direct labor Manufacturing overhead Fixed cost Factory building and equipment lease Factory insurance Production supervisor salary Total production Double click and put your awar Make Buy From Oude Diderential Amou Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below. Sandboard Inc. currently produces sandboards. Management is interested in outsourcing production of sandboards to a reputable manufacturing company that can supply the sandbounds for $220 per unit. Sandboard Inc. incurs the following annual production costs to produce 7,000 sandboards internally Variable production costs Direct materials Direct labor Manufacturing overhead Fixed production costs Factory building and equipment lease Factory insurance Production supervisor salary Total reduction costs Total Annual Fer Costa Unit 7,000 140 950,000 7 49,000 17 119,000 200,000 62,000 70,000 LAM,000 Outsourcing production eliminates all variable production costs, the production supervisor's salary, and factory insurance costs. Factory building and equipment lease costs will remain the same regardless of the decision to outsource or to produce internally. Required: A. Perform a differential analysis, assuring that making the sandboard intemally is one ahemative, and buying the sandboard from an outside manufacturer is the other alternative B. Explain which alternative is best and why. Your answers to this open-ended assignment should be placed in the space below this line. A B Cost to buy from outside Variable costs Direct materials Direct labor Manufacturing overhead Fixed cost Factory building and equipment lease Factory insurance Production supervisor salary Total production costs Deuble click and put your answer here Make Didonal Outode Acount