Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 90, (each consisting of four golf balls). Cost data are as follows. Per Pack 99 300 Packs Product costs directly traceable to balls! Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead General allocated overhead $2.99 $ 189,999 0.10 36,099 0.15 13,599 198,009 34,200 $ 371,790 The full cost of one pack of golf balls is $413. GI has received an offer from an outside supplier to supply any desired quantit at a price of $4.05 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 pre 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 90,000 (360,000 golf balls). (Round "Per Unit" answers to 2 decimal places.) Required: 1. Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of (360,000 golf balls) (Round "Per Unit" answers to 2 decimal places.) Per $ $ 4.05 $ 2.00 0.40 0 180,000 36,000 $ Purchase Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Common costs allocated to this product line Total costs 2-a. At what volume would Gl be indifferent between making and buying? (Do not round intermediate calculation final answer to nearest whole number.) Indifferent point packs 2-b. What does the indifference point indicate? (Do not round intermediate calculations and round your final ar whole number.) packs packs 3. Select the quantitative and/or qualitative factors that GI should consider before making the final decision. (You than one answer. Single click the box with the question mark to produce a check mark for a correct answer ar box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be as incorrect.) ? Possibility of interruptions in supply. ? Current price and changes in price. ? Alternative use for facilities freed up 2 Ability to maintain quality of tennis balls