I need help ASAP

1. (20 pts) Sunshine Fruit Co. makes its own shipping boxes. The annual cost to make 80,000 boxes is: Materials Labor Indirect Manufacturing Costs $120,000 20,000 Variable Fixed 16,000 60,000 $216,000 Total Suppose Weyerhouser offers to sell them boxes for $2.10 per box Given the above, should Sunshine Fruit make or buy the boxes? Suppose that all the above fixed costs are depreciation for equipment which is at the end of its 10-year life and was purchased for S600,000. New replacement equipment will cost S800,000 and have a 10-year life also. Will this fact make a difference for the make or buy decision? a) b)