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Item 2 1 0 points Item 2 Greens, Inc. ( GI ) manufactures golf - related equipment including golf balls. This year s expected production

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Item 2
Greens, Inc. (GI) manufactures golf-related equipment including golf balls. This years expected production of golf balls is 110,000 packs (each consisting of four golf balls). Cost data are as follows:
Per Pack 110,000 Packs
Product costs directly traceable to balls:
Direct materials $ 2.50 $ 275,000
Direct labour 1.20132,000
Variable manufacturing overhead 0.1516,500
Fixed manufacturing overhead 37,400
General allocated overhead 33,000
$ 493,900
The full cost of one pack of golf balls is $4.49. GI has received an offer from an outside supplier to supply any desired quantity of balls at a price of $5.55 per pack of four golf balls. The cost accounting department has provided the following information:
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.
No other costs will be affected.
Required:
1. Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of 110,000 packs (440,000 golf balls).(Round "Per Unit" answers to 2 decimal places.)
2-a. At what volume would GI be indifferent between making and buying? (Do not round intermediate calculations and round your final answer to nearest whole number.)

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