(Click the icon to view the make-versus-buy information.) The Svenson 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 2017 and the expected costs in 2018: 9 (Click the icon to view the costs.) Read the requirements. Data Table Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018 Total Manufacturing Manufacturing Costs of CMCB 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 Current Costs Expected Costs in 2017 in 2018 180 $ 170 45 1,600 1,500 Requirements 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 even if 320,000 320,000 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. 2. Suppose the capacity currently used to make CMCBs will become idle if Svenson purchases CMCBs from Minton. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations. 3. Now suppose that if Svenson purchases CMCBs from Minton, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essex Corporation. Svenson estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,000,000 Total expected incremental future costs $2,150,000 On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations. Print Done Requirement 2. Suppose the capacity currently used to make CMCBs will become idle if Svenson purchases CMCBs from Minton. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations. (If a box is not used in the table, leave the box empty, do not enter a zero.) Make Buy Total Per Unit Total Per Unit Total relevant costs Svenson should CMCBs because it costs Requirement 3. Now suppose that if Svenson purchases CMCBs from Minton, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essex Corporation. Svenson estimates incremental revenues from selling CB3s to be $2,000,000, and incremental costs from making CB3s to be $2,150,000. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations. (Complete all answer boxes. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Choices for Svenson Make CMCBs and Do Not Make CB3s Buy CMCBs and Do Not Make CB3s Buy CMCBs and Make CB3s Relevant Items Total incremental costs of making/buying CMCBs (from requirement 2) Excess of future costs over future revenues from CB3s Total relevant costs Svenson will minimize manufacturing costs by (Click the icon to view the make-versus-buy information.) The Svenson 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 2017 and the expected costs in 2018: 9 (Click the icon to view the costs.) Read the requirements. Data Table Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018 Total Manufacturing Manufacturing Costs of CMCB 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 Current Costs Expected Costs in 2017 in 2018 180 $ 170 45 1,600 1,500 Requirements 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 even if 320,000 320,000 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. 2. Suppose the capacity currently used to make CMCBs will become idle if Svenson purchases CMCBs from Minton. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations. 3. Now suppose that if Svenson purchases CMCBs from Minton, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essex Corporation. Svenson estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,000,000 Total expected incremental future costs $2,150,000 On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations. Print Done Requirement 2. Suppose the capacity currently used to make CMCBs will become idle if Svenson purchases CMCBs from Minton. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations. (If a box is not used in the table, leave the box empty, do not enter a zero.) Make Buy Total Per Unit Total Per Unit Total relevant costs Svenson should CMCBs because it costs Requirement 3. Now suppose that if Svenson purchases CMCBs from Minton, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essex Corporation. Svenson estimates incremental revenues from selling CB3s to be $2,000,000, and incremental costs from making CB3s to be $2,150,000. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations. (Complete all answer boxes. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Choices for Svenson Make CMCBs and Do Not Make CB3s Buy CMCBs and Do Not Make CB3s Buy CMCBs and Make CB3s Relevant Items Total incremental costs of making/buying CMCBs (from requirement 2) Excess of future costs over future revenues from CB3s Total relevant costs Svenson will minimize manufacturing costs by