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 110,000 Pack Packs Product costs directly traceable to balls: Direct materials $2.50 $275,000 Direct labour 1.50 165,000 Variable manufacturing overhead 0.20 22,000 Fixed manufacturing overhead 35,200 General allocated overhead 51,700 $548,900 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 xed 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. lfthe 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 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 2-a. At what volume would GI be indifferent between making and buying? (Do not round intermediate calculations and round your final answer to nearest whole number.) 2-b. What does the indifference point indicate? (Do not round intermediate calculations and round your final answers to nearest whole number.) packs packs 3. Select the quantitative and/or qualitative factors that GI 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 boxes left with a question mark will be automatically graded as incorrect.)