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Golfers, Inc. ( GI ) manufactures golf - related equipment including golf balls. This year s expected production of golf balls is 8 0 ,

Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This years expected production of golf balls is 80,000 packs (each consisting of four golf balls). Cost data are as follows:
Per Pack 80,000 Packs
Product costs directly traceable to balls:
Direct materials $ 2.50 $ 200,000
Direct labour 0.6048,000
Variable manufacturing overhead 0.2016,000
Fixed manufacturing overhead 24,000
General allocated overhead 22,400
$ 310,400
The full cost of one pack of golf balls is $3.88. GI has received an offer from an outside supplier to supply any desired quantity of balls at a price of $3.90 per pack of four golf balls. The cost accounting department has provided the following information:
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.
No other costs will be affected.
Required:
1. Prepare an analysis table showing whether GI would be better off making or buying the balls at a projected volume of 80,000 packs (320,000 golf balls).(Round "Per Unit" answers to 2 decimal places.)

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