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The Solar Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the
The Solar 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 (Click the icon to view the make-versus-buy information.) the expected costs in 2021: Read the requirements. (Click the ioon to view the costs.) Data table Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. More info Solar manufactured 5,000 CMCBs in 2020 in 25 batches of 200 each. In 2021 , Solar anticipates needing 2,500 CMCBs. The CMCBs would be produced in 20 batches of 125 each. The Manson Corporation has approached Solar about Requirements supplying CMCBs to Solar in 2021 at $280 per CMCB on whatever delivery schedule Solar wants. 1. Calculats the total expected manufacturing cost per unit of making CMCBs in 2021. 2. Suppose the capacity currently used to make CMCBs will become idle if Solar purchases CMCBs from Manson. On the besis of financial considerations alone, should Solar make CMCBs or buy them from Manson? Show your calculations. 3. Now suppose that ir Solar purchases CMCBs from Marison, its best altemative use of the capacily currently used for CMCBs is to make and sell special circuit boards (CBSs) to the Excite Corporation. Solar estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $1,900,000 Total expected incremental future costs $2,050,000 On the basis of financial considerations alone, should Solar make CMCBs or buy them from Manson? Show your calculations
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