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Problem #1: Make vs Buy Sunbeam Corporation manufactures gas grills. Next year's production is expected to be 20,000 units of Model Q. Currently, the company

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Problem #1: Make vs Buy Sunbeam Corporation manufactures gas grills. Next year's production is expected to be 20,000 units of Model Q. Currently, the company current year per unit production costs for searing attachment number of units produced current 18,000 year direct material $4.20 direct labor $3.90 machine rental* $2.10 plant administration, taxes and insurance* * $2.80 production manager's salary* * * $3.30 total per unit production cost for $16.30 current year *This is a specialized machine for the production of searing attachments. It is an annual rental cost. If the searing attachments are purchased, Sunbeam ** These are generally fixed costs that do not vary systematically with production volume. *** If searing attachments continue to be manufactured in-house, he will remain at his current job. If searing attachments are purchased, he will move data for next year expected volume of searing 20,000 attachments per unit searing attachment price $15.00 from vendor salary of new production manager at $65,000 other division salary increase for current production 8.0% managerComplete the following template on a per unit basis for buyr us make for next [1] year. [11 points] You must complete this template on a per unit basis, otherwise I will not give you partial credit. direct material direct labor purchase price of searing attachment machine rental plant administration, taxes and insurance production man ager's salary total cost At what volume will the cost to make equal the cost to buy? Show your [2] work. {4'1 points]

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