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Please disregard the incorrect answers labeled by the red flag (they are from a previous attempt) and use the new provided data table above to
Please disregard the incorrect answers labeled by the red flag (they are from a previous attempt) and use the new provided data table above to fill in the correct answers, thankyou :)
The Serendipity 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 2020 and the expected costs in 2021: B Click the icon to view the costs.) (Click the icon to view the make-versus-buy information.) Read the requirements. - X Data table Current Costs Expected Costs in 2021 in 2020 Variable manufacturing costs S 185 $ 180 29 45 1,700 2.000 Direct material cost per CMCB Direct manufacturing labor per CMCB Variable manufacturing cost per batch for setups, materials handling, and quality control Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 840,000 80.000 1,560,000 280.000 Print Done - X Requirements 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. 2. Suppose the capacity currently used to make CMCBs will become idle if Serendipity purchases CMCBs from Manson. On the basis of financial considerations alone, should Serendipity make CMCBs or buy them from Manson? Show your calculations. 3. Now suppose that if Serendipity purchases CMCBs from Manson, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Eleanor Corporation. Serendipity estimates the following incremental revenues and costs from CB35: Total expected incremental future revenues $2.300.000 Total expected incremental future costs $2.425,000 On the basis of financial considerations alone, should Serendipity make CMCBs or buy them from Manson? Show your calculations. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. Direct materials Total Manufacturing Manufacturing Costs of CMCB Cost per Unit 1.575.000's 175 351.000 39 135,000 15 Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable faced manufacturing costs 35 315.000 540.000 60 Unavoidable fixed manufacturing costs 2.910.000 324 Total manufacturing costs Requirement 2. Suppose the capacity currently used to make CMCBs will become idle if Sunshine purchases CMCBs from Mobey. On the basis of financial considerations alone, should Sunshine make CMCBs or buy them from Mobey? Show your calculations. (If an input field is not used in the table, leave the input field empty: do not enter a zero.) Make Total Per Unit Buy Total Per Unit $ 2.520,000 $ 280 Purchase cost Direct materials 175' 1.575,000 351,000 135,000 Direct manufacturing labor Variable batoh manufacturing costs 39 15 Avoidable fixed manufacturing costs 315,000 35 $ 2.376,000 s 264 S 2.520,000's 280 Total relevant costs Sunshine should make CMCBs because it costs less to make than to buy Requirement 3. Now suppose that if Sunshine purchases CMCBs from Mobey, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essence Corporation. Sunshine estimates incremental revenues from selling CB3s to be $2,100,000, and incremental costs from making CB3s to be $2,200.000. On the basis of financial considerations alone, should Sunshine make CMCBs or buy them from Mobey? Show your calculations. (Complete all input fields. For amounts with a 50 balance, make sure to enter "O" in the appropriate cell.) Choices for Sunshine Make CMCBS Buy CMCBs Buy CMCBS and Do Not and Do Not and Make Make CB35 Make CB3s CB3s Relevant Items Total incremental costs of making/buying CMCBs (from requirement 2) Excess of future costs over future $ $ 2.376.000's 2,520,000's 2.520.000 100.000 revenues from CB3s $ 2,376,000's 2,520,000 $ 2,620,000 Total relevant costs Sunshine will minimize manufacturing costs by making CMCBs and not making CB3s The Serendipity 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 2020 and the expected costs in 2021: B Click the icon to view the costs.) (Click the icon to view the make-versus-buy information.) Read the requirements. - X Data table Current Costs Expected Costs in 2021 in 2020 Variable manufacturing costs S 185 $ 180 29 45 1,700 2.000 Direct material cost per CMCB Direct manufacturing labor per CMCB Variable manufacturing cost per batch for setups, materials handling, and quality control Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 840,000 80.000 1,560,000 280.000 Print Done - X Requirements 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. 2. Suppose the capacity currently used to make CMCBs will become idle if Serendipity purchases CMCBs from Manson. On the basis of financial considerations alone, should Serendipity make CMCBs or buy them from Manson? Show your calculations. 3. Now suppose that if Serendipity purchases CMCBs from Manson, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Eleanor Corporation. Serendipity estimates the following incremental revenues and costs from CB35: Total expected incremental future revenues $2.300.000 Total expected incremental future costs $2.425,000 On the basis of financial considerations alone, should Serendipity make CMCBs or buy them from Manson? Show your calculations. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. Direct materials Total Manufacturing Manufacturing Costs of CMCB Cost per Unit 1.575.000's 175 351.000 39 135,000 15 Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable faced manufacturing costs 35 315.000 540.000 60 Unavoidable fixed manufacturing costs 2.910.000 324 Total manufacturing costs Requirement 2. Suppose the capacity currently used to make CMCBs will become idle if Sunshine purchases CMCBs from Mobey. On the basis of financial considerations alone, should Sunshine make CMCBs or buy them from Mobey? Show your calculations. (If an input field is not used in the table, leave the input field empty: do not enter a zero.) Make Total Per Unit Buy Total Per Unit $ 2.520,000 $ 280 Purchase cost Direct materials 175' 1.575,000 351,000 135,000 Direct manufacturing labor Variable batoh manufacturing costs 39 15 Avoidable fixed manufacturing costs 315,000 35 $ 2.376,000 s 264 S 2.520,000's 280 Total relevant costs Sunshine should make CMCBs because it costs less to make than to buy Requirement 3. Now suppose that if Sunshine purchases CMCBs from Mobey, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essence Corporation. Sunshine estimates incremental revenues from selling CB3s to be $2,100,000, and incremental costs from making CB3s to be $2,200.000. On the basis of financial considerations alone, should Sunshine make CMCBs or buy them from Mobey? Show your calculations. (Complete all input fields. For amounts with a 50 balance, make sure to enter "O" in the appropriate cell.) Choices for Sunshine Make CMCBS Buy CMCBs Buy CMCBS and Do Not and Do Not and Make Make CB35 Make CB3s CB3s Relevant Items Total incremental costs of making/buying CMCBs (from requirement 2) Excess of future costs over future $ $ 2.376.000's 2,520,000's 2.520.000 100.000 revenues from CB3s $ 2,376,000's 2,520,000 $ 2,620,000 Total relevant costs Sunshine will minimize manufacturing costs by making CMCBs and not making CB3sStep by Step Solution
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