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(Click the icon to view the make-versus-buy information.) The Sunshine Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important

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(Click the icon to view the make-versus-buy information.) The Sunshine Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2020 and the expected costs in 2021: (Click the icon to view the costs.) Read the requirements. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. Total Manufacturing Costs of CMCB Manufacturing Cost per Unit Direct materials Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable fixed manufacturing costs Unavoidable fixed manufacturing costs Total manufacturing costs X Data table Current Costs Expected Costs in 2020 in 2021 195 $ 170 41 29 1,700 1,400 Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labor cost per CMCB Variable manufacturing cost per batch for setups, materials handling, and quality control 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 cannot be avoided 120,000 280,000 Requirements 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. 2. Suppose the capacity currently used to make CMCBs will become idle if Sunshine purchases CMCBs from Manson. On the basis of financial considerations alone, should Sunshine make CMCBs or buy them from Manson? Show your calculations. 3. Now suppose that if Sunshine purchases CMCBs from Manson, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Excite Corporation, Sunshine estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $1,800,000 Total expected incremental future costs $1,910,000 On the basis of financial considerations alone, should Sunshine mako CMCBs or buy them from Manson? Show your calculations Print Done - More info Sunshine manufactured 12,000 GMCBs in 2020 in 60 batches of 200 each. In 2021, Sunshine anticipates needing 14,000 CMCBs. The CMCBs would be produced in 100 batches of 140 each. The Manson Corporation has approached Sunshine about supplying CMCBs to Sunshine in 2021 at $390 per CMCB on whatever delivery schedule Sunshine wants. Print Done

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