QUESTION 6: MAKE OR BUY DECISION Let's Play produces and sells games for all ages. It recently put on the market a new game named 'Let's Have Some Fun." The new game is very successful and the most popular seller. Let's Play is now at full capacity and sells all the games it produces. At the weekly meeting, the sales director expressed his concerns about expected sales for the immediate future: "The demand for Let's Have Some Fun will exceed the firm's capacity The company now produces 200,000 games a year. It has always fabricated all the game's accessories, including tokens. The director of production states that if Let's Play buys the tokens, the company can produce 25,000 more games. A firm offers to sell the tokens at $0.75 each. There are 8 players per game and each player needs a token. If Let's Play buys the tokens, all variable costs will decrease by 20%. The gross margin per game is as follows. Per Game h Sales revenue $ 24.95 Less: 6.43 Direct materials 7.25 Direct labour 3.88 Variable overhead Fixed overhead 4.69 $ 2.70 Gross margin re helew to earn partial credit. Requirement 1: Perform a differential (incremental analysis) to determine if Let's Play should buy the tokens from the outside supplier. Based on the analysis, Let's Play buy the tokens because the company would incur an incremental of $ Enter as a positive number. Requirement 2: What is the maximum price Let's Play should pay for each tokens Round to two decimal places Supporting Calculations !!! III % 1 x " BIT Requirement 1 supporting calculations (optional): Requirement 2 supporting calculations (optional): Hide