E12-25 (final answer) The Sundance 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.) (Click the icon to view the ma Read the requirements. 5 Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021 The total expected manufacturing cost per unit of making CMCBs in 2021 Is ibrary surces Enter any number in the edit Nelds and then click Check Answer tion Tools 4 parts remaining Clear All Kesources Regu Calculate the total expected manufacturing cost per unit of making CMCBs in 2021 Suppose the capacity currently used to make CMCBs will become idle if Sundance purchases CMCBs from Maverick On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Maverick? Show your calculations. 3. Now suppose that if Sundance purchases CMCBs from Maverick, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Excite Corporation Sundance estimates the following incremental revenues and costs from CB3s. Total expected incremental future revenues $2,500,000 Total expected incremental future costs $2,610,000 On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Maverick Show your calculations Print Done Clear AN Check Answe oration m = ( (CMCB ut the cos view the in 2020 in 2021 $ 188 5 195 alculate the 45 29 manufactu 1.750 1.300 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 # CMCBs are not made Fixed manufacturing overhead costs of plant depreciation insurance, and administration that cannot be avoided oven it CMCBS are not made 855,000 40.000 865 000 200,000 ber in the end Print Done during co Sundance manufactured 9,500 CMCBs in 2020 in 50 batches of 190 each. In 2021. Sundance anticipates needing 4,000 CMCBs. The CMCBs would be produced in 40 batches of 100 each. The Maverick Corporation has approached Sundance about supplying CMCBs to Sundance in 2021 at $350 per CMCB on whatever delivery schedule Sundance wants Print Done edit fields and then click Check Answer Clear All