Please answer all requirements.

Homework: Chapter 11 Homework Save Score: 0 of 22 pts 3 of 6 (0 complete) HW Score: 0%, 0 of 100 pts P11-41 (similar to) A Question Help 0 The Patterson Company produces gas grills. This year's expected production is 30,000 units. Currently, Patterson makes the side burners for its grills. Each grill includes two side burners. Patterson's management accountant reports the following costs for making the 60,000 burners: 9: (Click to view the information.) Patterson has received an offer from an outside vendor to supply any number of burners Patterson requires at $8.50 per burner. The following additional information is available: (Click to view the information) Read the requirements Requirement 1. Assume that if Patterson purchases the burners from the outside vendor, the facility where the burners are currently made will remain idle. On the basis of financial considerations alone, should Patterson accept the outside vendor's offer at the anticipated volume of 60,000 burners? Show your calculations. (If a box is not used in the table, leave the box empty; do not enter a zero.) Relevant Costs Make Buy More Info x a. Inspection, setup, and materials-handling costs vary with the number of batches in which the burners are produced. Patterson produces burners in batch sizes of 1,000 units. Patterson will produce the 60,000 units in 60 batches. b. Patterson rents the machine used to make the burners. If Patterson buys all of its burners from the outside vendor, it does not need to pay rent on this machine Total relevant costs Data Table - X Requirements Cost for 60,000 Cost per Unit Units $ 4.25 $ 255,000 1.90 Direct materials Variable direct manufacturing labor Variable manufacturing overhead Inspection, setup, materials handling Machine rent 114,000 51,000 0.85 5,400 11.000 1. Assume that if Patterson purchases the burners from the outside vendor, the facility where the burners are currently made will remain idle. On the basis of financial considerations alone, should Patterson accept the outside vendor's offer at the anticipated volume of 60,000 burners? Show your calculations. 2. For this question, assume that if the burners are purchased outside, the facilities where the burners are currently made will be used to upgrade the grills by adding a rotisserie attachment. (Note: Each grill contains two burners and one rotisserie attachment.) As a consequence, the selling price of grills will be raised by $24. The variable cost per unit of the upgrade would be $17, and additional tooling costs of $75,000 would be incurred. On the basis of financial considerations alone, should Patterson make or buy the burners, assuming that 30,000 grills are produced and sold)? Show your calculations 3. The sales manager at Patterson is concerned that the estimate of 30,000 grills may be high and believes that only 24,000 grills will be sold. Production will be cut back, freeing up work space. This space can be use to add the rotisserie attachments whether Patterson buys the burners or makes them in-house. At this lower output, Patterson will produce the burners in 48 batches of 1,000 units each. On the basis of financial considerations alone, should Patterson purchase the burners from the outside vendor? Show your calculations. 65,000 Allocated fixed costs of plant administration, taxes, and insurance $ 501,400 Total costs Print Done Choose from any list or enter any number in the input fields and then click Check Answer. Print Done