(Click the icon to view the make-versus-buy 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: (Click the icon to view the casts.) Read the requirements 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 Requirement 2. Suppose the capacity currently used to make CMCBs will become ide if Svenson purchases CMCBs fror Minton On the basis of financial considerations alone should Svenson make CMCBs or buy them from Minton? Show you calculations. (If a box is not used in the table leave the box emply do not enter a zero) Make Buy Total Per Unit Total Per Unit Total relevant costs Svenson should CMCBs because it casts Requiroment 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 soling CB3s to be $2,000,000, and incremental costs from making CB3s to be 52. 150,000. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations (Complete all Choose from any list or enter any number in the input fields and then continue to the next question calculations. It 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 curren 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 answer boxes. For amounts with a 50 balance, make sure to enter "O" in the appropriate cell) Choices for Svenson Make CMCBs Buy CMCBs Buy CMCBs and Do Not and Do Not and Make Relevant Items Make CB3s Make CB3s CB35 Total incremental costs of making/buying CMCBs (from requirement 2) Excess of future costs over future revenues from CB3s III Total relevant costs Svenson will minimize manufacturing costs by Choose from any list or enter any number in Make buy - X i Data Table Current Costs in 2017 Expected Costs in 2018 170 180 $ 50 Svel 45 1,600 1,500 Variable manufacturing costs Tote Direct material cost per CMCB Direct manufacturing labor cost per CMCB Variable manufacturing cost per batch for setups, materials Red use handiing, and quality control reve final Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided it CMCBs are not made Fixed manufacturing overhead costs of plant depreciation, Insurance, and administration that cannot be avoided even if Roll CMCBs are not made anas 320,000 320,000 800.000 800.000 Tote Print Done Excess of future costs over future revenues from CB35 Requirements T RI M ce 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