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I need help answering Question number 3 please. 1.Make-or-Buy Decision. - Keyboard, Inc., a manufacturer of pianos, typically sells each of its pianos for $1,480.

I need help answering Question number 3 please.

1.Make-or-Buy Decision. -Keyboard, Inc., a manufacturer of pianos, typically sells each of its pianos for $1,480. The cost of manufacturing and marketing one piano at the company's usual monthly volume of 6,000 units is shown below:

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Per Unit Total at 6,000 Units Manufacturing costs Variable S 600 5 3,600,000 Fixed 240 1,440,000 Total manufacturing 5 840 $5,040,000 Marketing and administrative costs Variable $ 100 S 600,000 Fixed 280 1,680,000 Total marketing and administrative costs 380 2,280,000 Total cost 5 1,220 5 7,320,000

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