Kennedy Company manufactures variety of scooters. The company is in need of 30,000 batteries for the scooters. They can buy the batteries from an outside supplier for $42 a battery or produced the battery internally at the cost below: Direct materials Direct labor Variable manufacturing $ 20 14 5 overhead Fixed manufacturing overhead 15 Total cost 54 All of the fixed expenses are allocated and not relevant to this decision. 1. Calculate the cost to make or buy the 30,000 units. Cost of purchasing Unit Cost- Make Total Cost- Make Total Cost- Unit Cost- Buy Buy $ Direct materials $ Direct labor Variable manufacturing overhead x $ $ Total costs $ 2. Difference in favor of continuing to make the batteries: Unit Cost: $ Total Cost: $ The company should reject $ +A $ 1260000 the offer and continue to make the batteries. 3. How would your answer change if you could produce a new product in the vacated space with segment margin of $100,000 a year? Cost of purchasing Unit Cost- Total Cost- Unit Cost- Buy Make Make Total Cost- Buy $ Direct materials $ Direct labor $ $ Variable manufacturing overhead Opportunity Cost Total costs $ $ $ $ 4. Difference in favor of buying the batteries from an outside vendor: Unit Cost: $ Total Cost: $ 5. The company should accept x per unit. the offer from the outside vendor for $