I need the answers and cell references for the second half of this problem
Make or Buy JayCo Ltd. manufactures tennis racquets. In addition to the metals for the frame, each racquet requires 3 yards of nylon blend string, which JayCo Ltd. also produces. Recently, Strung Out Strings has approached JayCo Ltd. to sell string for $15 per pack. JayCo has provided you the following information about their costs for producing 39,500 packs of string from last year: Direct materials 177,750 Direct labor 177,750 Variable MOH 79,988 Fixed MOH 150,000 Total Cost 585,488 Currently, JayCo Ltd. has no other plans for the facilities that produce the string. Should JayCo Ltd. continue to make the string intemally, or accept the offer from Strung Out String? (Show calculations and explain.) \" _s 592,500 $ 177,750 4. _5_ = 177, 750 _ 2. 03 = 79, 933 = 150000 _ 14. 32 _ 535433 Financial (disadvantage) to b 5 (0.18) 5 (7,013) Should JayCo Ltd. continue to make the string or buy it? Explain. m It costs less to make the string for $14.82 per unit vs buying it for $15. it will save $7012 for the year. JayCo Ltd.'s 8&0 department wants to release a new racquet for kids that will provide a Net Income of $50,000 (Hint. this is TOTAL profit). JayCo Ltd. could buy the string fom an outside supplier and then remodel the string facility for : $7,500 to make these kids racquets. With this new development, should JayCo Ltd. continue to make the string, or : buy from Strung Out Strings and make the new kids racquets? (Show calculations and explain.) : JayCo Ltd.'s R&D department wants to release a new racquet for kids that will provide a Net Income of $50,000 (Hint: this is TOTAL profit). JayCo Ltd. could buy the string fom an outside supplier and then remodel the string facility for $7,500 to make these kids racquets. With this new development, should JayCo Ltd. continue to make the string, or buy from Strung Out Strings and make the new kids racquets? (Show calculations and explain.) Financial advantage _ Should JayCo Ltd. continue to make the string or buy it to remodel? Explain. m