The Serendipity 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 2020 and the expected costs in 2021: - Data table Current Costs Expected Costs in 2020 in 2021 $ 182 $ 160 39 45 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 1,200 1,300 are not made 350,000 180,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 840,000 280,000 ........: More info Serendipity manufactured 7,000 CMCBs in 2020 in 40 batches of 175 each. In 2021, Serendipity anticipates needing 4,000 CMCBs. The CMCBs would be produced in 40 batches of 100 each. The Michigan Corporation has approached Serendipity about supplying CMCBs to Serendipity in 2021 at $280 per CMCB on whatever delivery schedule Serendipity wants. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. Total Manufacturing Manufacturing Costs of CMCB Cost per Unit $ 1,665,000 $ 185 315,000 35 Direct materials 135,000 15 Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable fixed manufacturing costs 35 315,000 900,000 100 Unavoidable fixed manufacturing costs $ 3,330,000 $ 370 Total manufacturing costs Requirement 2. Suppose the capacity currently used to make CMCBs will become idle if Sundance purchases CMCBs from Marley. On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Marley? Show your calculations. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Make Buy Total Per Unit Total Per Unit 1 Purchase cost $ 3,690,000 $ 410 1 1 Direct materials 1,665,000 185 315,000 35 Direct manufacturing labor Variable batch manufacturing costs 1 135,000 15 Avoidable fixed manufacturing costs 315,000 35 $ 2,430,000 $ 270 $ 3,690,000 $ 410 Total relevant costs Sundance should make CMCBs because it costs less to make than to buy. Requirement 3. Now suppose that if Sundance purchases CMCBs from Marley, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Easy Corporation. Sundance estimates incremental revenues from selling CB3s to be $1,800,000, and incremental costs from making CB3s to be $2,000,000. On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Marley? Show your calculations. (Complete all input fields. For amounts with a $0 balance, make sure to enter "O" in the appropriate cell.) Choices for Sundance Make CMCBs Buy CMCBs Buy CMCBs and Do Not and Do Not and Make Relevant Items Make CB3s Make CB3s CB3s Total incremental costs of making/buying CMCBs (from requirement 2) $ 2,430,000 $ 3,690,000 $ 3,690,000 Excess of future costs over future 0 200,000 revenues from CB3s $ 2,430,000 $ 3,690,000 $ 3,890,000 Total relevant costs Sundance will minimize manufacturing costs by making CMCBs and not making CB3s