The Celltech Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards $($CB$-025),$ an important part of the cellular modem. It reports the following cost information about the costs of making CB$-025$s in $2023$ and the expected costs in $2024$:

Current Costs in $2023$ Expected Costs in $2024$

Variable manufacturing costs:

Direct material cost per CB$-025$ $$180$ $$170$

Direct manufacturing labor cost per CB$-0255045$

Variable manufacturing cost per batch for setups, materials handling, and quality control $16001500$

Fixed manufacturing cost:

Fixed manufacturing overhead costs that can be avoided if CB$-025$s are not made $320,000320,000$

Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CB$-025$s are not made $800,000800,000$

Celltech manufactured $8,000$ CB$-025$s in $2023$ in $40$ batches of $200$ each. In $2024,$ Celltech anticipates needing $10,000$ CB$-025$s$.$ The CB$-025$s would be produced in $80$ batches of $125$ each. The Alpha Corporation has approached Celltech about supplying CB$-025$s to Celltech in $2024$ at $$300$ per CB$-025$ on whatever delivery schedule Celltech wants.

$1.$ Calculate the total expected manufacturing cost of making CB$-025$s in $2024$ and manufacturing cost per unit of CB$-025$ in $2024.$

$2.$ Suppose the capacity currently used to make CB$-025$s will become idle if Celltech purchases CB$-025$s from Alpha.

a$.$ On the basis of financial considerations alone, should Celltech make CB$-025$s or buy them from Alpha? Show your calculations.

b$.$ What is the maximum price per CB$-025$ Celltech would be willing to pay Alpha under these circumstances?

$3.$ Now suppose that if Celltech purchases CB$-025$s from Alpha, its best alternative use of the capacity currently used for CB$-025$s is to make and sell a different kind of circuit boards $($CB$123)$ to the Winton Corporation. Celltech estimates the following incremental revenues and costs from CB$-123$s:

Total expected incremental future revenues $$2,000,000$

Total expected incremental future costs $$2,150,000$

On the basis of financial considerations alone, should Celltech make CB$-025$s or buy them from Alpha? Show your calculations.