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Please Can I have help with the requirement 2 and other parts The Sundance Corporation manufactures cellular modems. It manufactures its own cellular modem circuit
Please Can I have help with the requirement 2 and other parts
The Sundance Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2017 and the expected costs in 2018 : (Click the icon to view the costs.) Requirement 2. Suppose the capacity currently used to make CMCBs will become idle if Sundance purchases CMCBs from Moonbeam. On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Moonbeam? Show your calculations. (If a box is not used in the table, leave the box empty; do not enter a zero.) Data table More info Sundance manufactured 6,000 CMCBs in 2017 in 30 batches of 200 each. In 2018, Sundance anticipates needing 2,500 CMCBs. The CMCBs would be produced in 20 batches of 125 each. The Moonbeam Corporation has approached Sundance about supplying CMCBs to Sundance in 2018 at $210 per CMCB on whatever delivery schedule Sundance wants. Requirements 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. 2. Suppose the capacity currently used to make CMCBs will become idle if Sundance purchases CMCBs from Moonbeam. On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Moonbeam? Show your calculations. 3. Now suppose that if Sundance purchases CMCBs from Moonbeam, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Excite Corporation. Sundance estimates the following incremental revenues and costs from CB3s: TotalexpectedincrementalfuturerevenuesTotalexpectedincrementalfuturecosts$1,900,000$2,125,000 On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Moonbeam? Show your calculations. Requirement 2. Suppose the capacity currently used to make CMCBs will become idle if Sundance purchases CMCBs from Moonbeam. On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Moonbeam? Show your calculations. (If a box is not used in the table, leave the box empty; do not enter a zero.)Step by Step Solution
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