Sundance manufactured 12,000 CMCBs in 2017 in 60 batches of 200 each. In 2018, Sundance anticipates needing 14,000 CMCBs. The CMCBs would be produced in 100 batches of 140 each. The Maverick Corporation has approached Sundance about supplying CMCBs to Sundance in 2018 at $440 per CMCB on whatever delivery schedule Sundance wants. Score: 0 of 2 pts 4 of 9 (8 complete) E11-25 (similar to) (Click the icon to view the make-versus- 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.) Read the requirements. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. Total Manufacturing Manufacturing Cost per Unit Costs of CMCB Direct materials Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable fixed manufacturing costs Unavoidable fixed manufacturing costs Total manufacturing costs Current Costs Expected Costs in 2017 in 2018 185 $ 160 44 25 Variable manufacturing costs Direct material cost per CMCB 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 1,700 1,400 are not made 720,000 280,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 1,200,000 1,260,000 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 Maverick. On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Maverick? Show your calculations. 3. Now suppose that if Sundance purchases CMCBs from Maverick, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Electronic Corporation. Sundance estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,200,000 Total expected incremental future costs $2,350,000 On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Maverick? Show your calculations