The Solar Corporation manufacturers 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 expected costs in 2018.

Solar manufactured 9,000 CMCBs in 2017 in 50 batches of 180 each. In 2018, Solar anticipates needing 4,000 CMCBs. the CMCBs would be produced in 40 batches of 100 each. The Marrow Corporation has approached Solar about supplying CMCBs to Solar in 2018 at $270 per CMCB on whatever delivery schedule Solar wants.

- I VY ACCOUNTINLUN TUNTIC WUN. UNTUPU 2 of 9 (0 complete) X 0 Data Table tures cellular modems It manufa odem. It reports the following cos tion.) costs) Current Costs in 2017 Expected Costs in 2018 otal expected manufacturing cos 160 $ Total Manufactu Costs of CM 165 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 are not made 1,500 2,000 osts costs zing costs 270 000 240,000 Fixed manufacturing overhead costs of plant depreciation insurance, and administration that cannot be avoided even if CMCBs are not made 900.000 520,000 Print Done ields and then click Check Answer. to anufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an lar modem. It reports the following cost information about the costs of making CMCBs in 2017 and the i (Click the icon to view the make-versus-buy information.) Read the requirements -the costs) 1 Requirements the total expected manufacturing Total Manuf Costs of 9 costs 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 Solar purchases CMCBs from Marrow. On the basis of financial considerations alone, should Solar make |CMCBs or buy them from Marrow? Show your calculations 3. Now suppose that if Solar purchases CMCBs from Marrow, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essence Corporation Solar estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $1,800,000 Total expected incremental future costs $2,050,000 On the basis of financial considerations alone, should Solar make CMCBs or buy them from Marrow? Show your calculations! ning costs during costs Print Done elds and then click Check Answer Clear All