(Click the icon to view the make-versus-buy information.) The Swanson 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: (Click the icon to view the costs.) Read the requirements. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018 Requirements 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 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 Swanson purchases CMCBs from Marrow. On the basis of financial considerations alone, should Swanson make CMCBs or buy them from Marrow? Show your calculations. Now suppose that if Swanson purchases CMCBs from Marrow, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Evening Corporation. Swanson estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,100,000 Total expected incremental future costs $2,210,000 On the basis of financial considerations alone, should Swanson make CMCBs or buy them from Marrow? Show your calculations. Unavoidable fixed manufacturing costs Total manufacturing costs 1 Data table More info Current Costs Expected Costs in 2018 in 2017 Swanson manufactured 9,000 CMCBs in 2017 in 50 batches of 180 each. In 2018, Swanson anticipates needing 5,000 CMCBs. The CMCBs would be produced in 25 batches of 200 each. The Marrow Corporation has approached Swanson about supplying CMCBs to Swanson in 2018 at $410 per CMCB on whatever delivery schedule Swanson wants. Variable manufacturing costs $ 188 $ 160 45 55 Print Done 1,500 1,200 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 540,000 400,000 CMCBs are not made 720,000 650,000