Golfers, Inc. (Gl) 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 Direct labour Variable manufacturing overhead Fixed manufacturing overhead General allocated overhead $2.32 $388, ege 8.80 88,00 8.20 22,eee 132.000 se, tee $622,620 The full cost of one pack of golf bells is $5.46. 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 overhesd is the cost of lessing the machine that stamps out the bells. The machine can produces maximum of 500.000 bells 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 110,000 packs (440,000 golf balls). (Round "Per Unit" answers to 2 decimal places.) 110,000 packe Make Buy Per Unit Difference Purchase Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing averhead Common costs allocated to this product line Total costs 2.a. At whet 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 lo It will cost more to if the quantity exceeds if the quantity is below packs packs