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ou leceived no credit for this question in the previous attempt 3 View Golfers, Inc. (Gl) manufactures golf-related equipment including golf balls. This year's expected

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ou leceived no credit for this question in the previous attempt 3 View Golfers, Inc. (Gl) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 100,000 packs (each consisting of four golf balls). Cost data are as follows: Per Pack 100.ee Packs $1.00 -Book Product costs directly traceable to balls: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead General allocated overhead 8.40 0.25 $100,000 40,000 25,000 12,000 35,000 212,000 ference The full cost of one pack of golf balls is $2.12. G has received an offer from an outside supplier to supply any desired quantity of balls at a price of $1,80 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 I would be better off making or buying the balls at a projected volume of 100,000 packs (400,000 golf balls), (Round "Per Unit" answers to 2 decimal places)

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