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 2017 and the expected costs in 2018: (Click the icon to view the costs.) (Click the icon to view the make-versus-buy information.) i Required Costs x Current Costs Expected Costs in 2018 in 2017 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 Serendipity purchases CMCBs from Manson. On the basis of financial considerations alone, should Serendipity make CMCBs or buy them from Manson? Show your calculations. 3. Now suppose that if Serendipity purchases CMCBs from Manson, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Eleanor Corporation. Serendipity estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,700,000 Total expected incremental future costs $2,820,000 On the basis of financial considerations alone, should Serendipity make CMCBs or buy them from Manson? Show your calculations. $ 200 $ 177 25 41 Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labour 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 1,500 1,800 Print Done are not made 450,000 400,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 1,080,000 300,000 Print Done 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.) (Click the icon to view the make-versus-buy information.) Required Costs Current Costs Expected Costs in 2018 in 2017 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 Michigan. On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Michigan? Show your calculations. 3. Now suppose that if Sundance purchases CMCBs from Michigan, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Evening Corporation. Sundance estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,400,000 Total expected incremental future costs $2,550,000 On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Michigan? Show your calculations. $ 170 $ 182 45 44 1,500 1.400 Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labour 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 are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if Print Done 450,000 420,000 CMCBs are not made 1,260,000 1,260,000 Print Done 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 2017 and the expected costs in 2018: (Click the icon to view the costs.) (Click the icon to view the make-versus-buy information.) i Required Costs x Current Costs Expected Costs in 2018 in 2017 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 Serendipity purchases CMCBs from Manson. On the basis of financial considerations alone, should Serendipity make CMCBs or buy them from Manson? Show your calculations. 3. Now suppose that if Serendipity purchases CMCBs from Manson, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Eleanor Corporation. Serendipity estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,700,000 Total expected incremental future costs $2,820,000 On the basis of financial considerations alone, should Serendipity make CMCBs or buy them from Manson? Show your calculations. $ 200 $ 177 25 41 Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labour 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 1,500 1,800 Print Done are not made 450,000 400,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 1,080,000 300,000 Print Done 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.) (Click the icon to view the make-versus-buy information.) Required Costs Current Costs Expected Costs in 2018 in 2017 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 Michigan. On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Michigan? Show your calculations. 3. Now suppose that if Sundance purchases CMCBs from Michigan, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Evening Corporation. Sundance estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,400,000 Total expected incremental future costs $2,550,000 On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Michigan? Show your calculations. $ 170 $ 182 45 44 1,500 1.400 Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labour 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 are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if Print Done 450,000 420,000 CMCBs are not made 1,260,000 1,260,000 Print Done