Per Pack Packs 2 Product costs directly traceable to balls: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead General allocated overhead $3.60 $300,000 1.20 120,000 8.15 15,000 60,000 48,000 $543,800 The full cost of one pack of golf balls is $5.43. GI has received an offer from an outside supplier to supply any desired quantity of balls at a price of $5.85 per pack of four golf balls. The cost accounting department has provided the following information 0232.03 a. 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. b. No other costs will be affected. Required: 1. Prepare an analysis showing whether Gl 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.) 100,000 packs Make Buy Per Unit Difference Purchase Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Common costs allocated to this product line Total costs 2-a. At what volume would Gl be indifferent between making and buying? (Do not round intermediate calculations and round your final answer to nearest whole number.)