Golfers, Inc. (GI) 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 Pack 110,000 Packs Product costs directly traceable to balls: Direct materials 18 Direct labour Variable manufacturing overhead $3.00 $330,000 1.20 0.20 132,000 22,000 Fixed manufacturing overhead 33,000 General allocated overhead 45, 100 $562,100 The full cost of one pack of golf balls is $5.11. Gl has received an offer from an outside supplier to supply any desired quantity of balls at a price of $5.40 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 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.) Purchase Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Common costs allocated to this product line Per Unit Make 110,000 packs Buy Difference :51 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 calculations and round your 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 answers to nearest whole number.) It will cost more to It will cost more to if the quantity exceeds if the quantity is below packs packs