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how to slove? Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 100.000 packs (each consisting of

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how to slove?

Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 100.000 packs (each consisting of four golf balls). Cost data are as follows: 100,000 Per Pack $ Product costs directly traceable to balls: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead General allocated overhead $2.80 1.5e 0.20 280,000 150,000 20,000 88,000 29,000 567,000 The full cost of one pack of golf balls is $5.67. Gl has received an offer from an outside supplier to supply any desired quantity of balls at a price of $5.60 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 100.000 packs (400,000 golf balls). (Round "Per Unit" answers to 2 decimal places.) 100 000 packs Buy Dimerence Make Per Unit Purchase Required: 1. Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of 100,000 packs (400,000 golf balls). (Round "Per Unit" answers to 2 decimal places.) 100,000 packs Make Buy Per Unit Difference Purchase Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Common costs allocated to this product line Total costs

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