Golfers, Inc (G) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 110,000 packs (each consisting of four golf balls). Cost data are as follows: Per 110,000 Pok Pack Product conta directly traceable to ballet Direct materials $2.50 275,000 Direct labour 1.50 165,000 Variable manufacturing overhead 0.20 22,000 Pixed manufacturing overhead 15,200 General allocated overhead 51,200 54.900 10 5 The full cost of one pack of golf balls is $4.99 GI has received an offer from an outside supplier to supply any desired quantity of balls at a price of $5.80 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 maching that stamps out the balls. The machine can produce a maximum of 500,000 balls per year. 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 Gl would be better off making or buying the balls at a projected volume of 110,000 packs (440,000 golf balls). (Round "Per Unit" answers to 2 decimal places boy 38000 Purchase Direct materials Director Virishie manufacturing vad Fund mufacturing overhead Per Unit 13 60 13 20 5 1.50 0:20 110,000 MARE 13 275.000 16500 22.000 362001 Difference 638 000 275,000 165.000 22.000 35200 ww 2-a. At what volume would Gl be indifferent between making and buying? (Do not round Intermediate calculations and round your final answer to nearest whole number.) 15:03 Indiferent point packs 2-b. What does the indifference point indicate? (Do not round intermediate calculations and round your final answers to nearest whole number:) it will cost more But will cost more to the quantity exceeds the quantity is below PS packs 3. Select the quantitative and/or qualitative factors that I should consider before making the final decision. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any bones left with a question mark will be automatically graded as incorrect.) Possibility of interruptions in supply Current price and changes in pico Aternative use for fechies freed up Ability to maintain quality of tennis balis. 2 Any labout or production issues that may happen 2 Change in management structure Climatic conditions in area where plantis stated