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Medbury Communications Systems ( MCS ) produces mobile radios for arctic and other harsh environments. The costs to manufacture and market the radios at the

Medbury Communications Systems (MCS) produces mobile radios for arctic and other harsh environments. The costs to manufacture
and market the radios at the company's normal quarterly volume of 14,160 units are shown in the following table: Complete this question by entering your answers in the tabs below.
Req A1
Req A2
Req B
Req C
Req E2
Req F1
Req F2
A proposal is received from an outside contractor who will make and ship 4,000 radios per quarter directly to MCS's customers
as orders are received from MCS's sales representatives. The fixed marketing cost at MCS would be unaffected, but its
variable marketing costs would be cut by 25 percent for these 4,000 units produced by the contractor. MCS's plant would
operate at two-thirds of its normal level, and total fixed manufacturing costs would be cut by 30 percent. What in-house unit
cost should be used to compare with the quotation received from the supplier? Assume the payment to the outside contractor
is $382.(Do not round intermediate calculations. Round your final answer to 2 decimal places.) Complete this question by entering your answers in the tabs below.
A proposal is received from an outside contractor who will make and ship 4,000 radios per quarter directly to MCS's customers
as orders are received from MCS's sales representatives. The fixed marketing cost at MCS would be unaffected, but its
variable marketing costs would be cut by 25 percent for these 4,000 units produced by the contractor. The idle facilities would
be used to produce 3,200 modified radios per month for use in high-security operations. These modified radios could be sold
for $712 each, while the costs of production would be $432 per unit variable manufacturing expense. Variable marketing costs
would be $72 per unit. Fixed marketing and manufacturing costs would be unchanged whether the original 14,160 regular
radios were manufactured or the mix of 10,160 regular radios plus 3,200 modified radios were produced. What in-house unit
cost should be used to compare with the quotation received from the outside contractor? Assume the payment to the outside
contractor is $382.(Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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