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Manufacturers. The price of has purchased 20,000 motherboards annually from Digital per unit last year. GE's management has asked for an estimate of yearly and

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Manufacturers. The price of has purchased 20,000 motherboards annually from Digital per unit last year. GE's management has asked for an estimate of yearly and was sold for $80 motherboards in GE's manufacturing facilities. GE makes computer and has little experience in the manufacture of motherboards. The production manager and the accounting department have prepared a report for management detailing the cost for the production of the annual requirements of motherboards. additional production employees would be hired to manufacture the motherboards but no additional equipment, space or supervision would be needed. The report states that total cost for 20,000 units are estimated at $1,914,000 or $95.70 per unit. The current purchase price is $68.00 per unit so the report recommends continued purchase of the product. - Manufacturing overhead is annliori in nmaw... winers Required Evaluate the decision to continue purchasing the motherboards. Provide any supporting * calculations you consider necessary. (12 Marks)

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