EXERCISE 9-7 Determining Whether to Make or Buy [LO1 - CC4] Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 100,000 packs (each consisting of four golf balls). Cost data are as follows: The full cost of one pack of golf balls is $2.12. GI has received an offer from an outside supplier to supply any desired quantity of balls at a price of $1.80 per pack of four golf balls. The cost accounting department has provided the following information: a. The direct fixed manufacturing overhead is the cost of leasing the machine that stamps out the balls. The machine can produce a maximum of 500,000 balls per year. If the balls are bought, the machine will no longer be needed. b. No other costs will be affected. Required: 1. Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of 100,000 packs ( 400,000 golf balls). 2. At what volume would GI be indifferent between making and buying? What does the indifference point indicate? List other quantitative and/or qualitative factors that GI should consider before making the final decision