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Please help with problem and explain to me how it was solved. (Click the icon to view the make-versus-buy information.) The Solar Corporation manufactures cellular

Please help with problem and explain to me how it was solved.

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(Click the icon to view the make-versus-buy information.) The Solar 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.) I' Read the requirements. ULUI. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. Total Manufacturing Manufacturing Costs of CMCB Cost per Unit Direct materials Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable fixed manufacturing costs Unavoidable fixed manufacturing costs Total manufacturing costs Data Table Current Costs Expected Costs in 2017 in 2018 Variable manufacturing costs Direct material cost per CMCB $ 190 $ 182 45 35 Direct manufacturing labor cost 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 1,300 1,20 are not made 360,000 250,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 420,000 450,000 Print Done More Info Solar manufactured 6,000 CMCBs in 2017 in 30 batches of 200 each. In 2018, Solar anticipates needing 5,000 CMCBs. The CMCBs would be produced in 25 batches of 200 each. The Morning Corporation has approached Solar about supplying CMCBs to Solar in 2018 at $290 per CMCB on whatever delivery schedule Solar wants. Print Done 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 Solar purchases CMCBs from Morning. On the basis of financial considerations alone, should Solar make CMCBs or buy them from Morning? Show your calculations. 3. Now suppose that if Solar purchases CMCBs from Morning, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Elle Corporation. Solar estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,200,000 Total expected incremental future costs $2,375,000 On the basis of financial considerations alone, should Solar make CMCBs or buy them from Morning? Show your calculations. Print Done

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