"In my opinion, we ought to stop making our own drums and accept that outside supplier director of Antilles Refining, N.V., of Aruba. "At a price of 102 florins per drum, we would be manufacture the drums in our own plant. (The currency in Aruba is the florin, denoted by would save 2,400,000 florins on an annual basis." Antilles Refining's present cost to manu drums per year): A decision about whether to make or buy the drums is especially important at this time, since drums is completely worn out and must be replaced. The choices facing the company are as - Alternative 1: Purchase new equipment and continue to make the drums. The equipmen a five-year useful life and no salvage valuie. The company uses straight-line depreciation - Alternative 2: Purchase the drums from an outside supplier at Afl102 per drum under a fir The new equipment would be more efficient than the equipment that Antilles Refining has bee manufacturer, would reduce direct labour and variable overhead costs by 30%. The old equipm cost (Afl3,000,000 per year) and direct materials cost per drum would not be affected by the ne capacity would be 3,000,000 drums per year. The company has no other use for the space beir The company's total general company overhead would be unaffected by this decision. Required: 1-a. Calculate the total costs and costs per drum under the two alternatives. Assume that 240,00 (Round "Cosi Per Drum" answers to 2 decimal places.) "In my opinion, we ought to stop making our own drums and accept that outside suppli director of Antilles Refining, N.V., of Aruba. "At a price of 102 florins per drum, we would manufacture the drums in our own plant. (The currency in Aruba is the florin, denoted by) would save 2,400,000 florins on an annual basis." Antilles Refining's present cost to mai drums per year): A decision about whether to make or buy the drums is especially important at this time, sin drums is completely worn out and must be replaced. The choices facing the company are - Alternative 1: Purchase new equipment and continue to make the drums. The equipm a five-year useful life and no salvage value. The company uses straight-line depreciati - Alternative 2: Purchase the drums from an outside supplier at Afl102 per drum under a The new equipment would be more efficient than the equipment that Antilles Refining has be manufacturer, would reduce direct labour and variable overhead costs by 30%. The old equip cost (AfI3,000,000 per year) and direct materials cost per drum would not be affected by the capacity would be 3,000,000 drums per year. The company has no other use for the space b The company's total general company overhead would be unaffected by thisdecision. Required: 1-a. Calculate the total costs and costs per drum under the two alternatives. Assume that 240 (Round "Cosi Per Drum" answers to 2 decimal places.) 1-a. Calculate the total costs and costs per drum under the two alternatives. Assume that 240,000 (Round "Cost Per Drum" answers to 2 decimal places.) 1-b. Should the company make or buy based on analysis in part (1-a)? Make Buy 2-a. Calculate the total costs and costs per drum under the two alternatives. ssume that 250,000 drum (Round "Cost Per Drum" answers ro 2 decimal places.) culate the total costs and costs per drum under the two alternatives. Assume that 250,000 drums a "Cost Per Drum" answers to 2 decimal places.) b. Should the company make or buy based on analysis in part (2-a)? Make Buy 2-c. Calculate the total costs and costs per drum under the two alternatives. Assume that 3,000,000 drums are (Round "Cost Per Drum" answers to 2 decimal places.) "In my opinion, we ought to stop making our own drums and accept that outside supplier director of Antilles Refining, N.V., of Aruba. "At a price of 102 florins per drum, we would be manufacture the drums in our own plant. (The currency in Aruba is the florin, denoted by would save 2,400,000 florins on an annual basis." Antilles Refining's present cost to manu drums per year): A decision about whether to make or buy the drums is especially important at this time, since drums is completely worn out and must be replaced. The choices facing the company are as - Alternative 1: Purchase new equipment and continue to make the drums. The equipmen a five-year useful life and no salvage valuie. The company uses straight-line depreciation - Alternative 2: Purchase the drums from an outside supplier at Afl102 per drum under a fir The new equipment would be more efficient than the equipment that Antilles Refining has bee manufacturer, would reduce direct labour and variable overhead costs by 30%. The old equipm cost (Afl3,000,000 per year) and direct materials cost per drum would not be affected by the ne capacity would be 3,000,000 drums per year. The company has no other use for the space beir The company's total general company overhead would be unaffected by this decision. Required: 1-a. Calculate the total costs and costs per drum under the two alternatives. Assume that 240,00 (Round "Cosi Per Drum" answers to 2 decimal places.) "In my opinion, we ought to stop making our own drums and accept that outside suppli director of Antilles Refining, N.V., of Aruba. "At a price of 102 florins per drum, we would manufacture the drums in our own plant. (The currency in Aruba is the florin, denoted by) would save 2,400,000 florins on an annual basis." Antilles Refining's present cost to mai drums per year): A decision about whether to make or buy the drums is especially important at this time, sin drums is completely worn out and must be replaced. The choices facing the company are - Alternative 1: Purchase new equipment and continue to make the drums. The equipm a five-year useful life and no salvage value. The company uses straight-line depreciati - Alternative 2: Purchase the drums from an outside supplier at Afl102 per drum under a The new equipment would be more efficient than the equipment that Antilles Refining has be manufacturer, would reduce direct labour and variable overhead costs by 30%. The old equip cost (AfI3,000,000 per year) and direct materials cost per drum would not be affected by the capacity would be 3,000,000 drums per year. The company has no other use for the space b The company's total general company overhead would be unaffected by thisdecision. Required: 1-a. Calculate the total costs and costs per drum under the two alternatives. Assume that 240 (Round "Cosi Per Drum" answers to 2 decimal places.) 1-a. Calculate the total costs and costs per drum under the two alternatives. Assume that 240,000 (Round "Cost Per Drum" answers to 2 decimal places.) 1-b. Should the company make or buy based on analysis in part (1-a)? Make Buy 2-a. Calculate the total costs and costs per drum under the two alternatives. ssume that 250,000 drum (Round "Cost Per Drum" answers ro 2 decimal places.) culate the total costs and costs per drum under the two alternatives. Assume that 250,000 drums a "Cost Per Drum" answers to 2 decimal places.) b. Should the company make or buy based on analysis in part (2-a)? Make Buy 2-c. Calculate the total costs and costs per drum under the two alternatives. Assume that 3,000,000 drums are (Round "Cost Per Drum" answers to 2 decimal places.)