The Summer 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.) i (Click the icon to view the make-versus-buy information.) Read the requirements. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. Direct materials Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable fixed manufacturing costs Unavoidable fixed manufacturing costs Total manufacturing costs Data Table Variable manufacturing costs Total Manufacturing Manufacturing Costs of CMCB Cost per Unit Current Costs Expected Costs in 2017 in 2018 Direct material cost per CMCB Direct manufacturing labor cost per CMCB 175 $ 45 165 29 Variable manufacturing cost per batch for setups, materials handling, and quality control 1,300 1,500 Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBS are not made 480,000 495,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBS are not made 480,000 1,170,000 Print Done Requirements 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 Summer purchases CMCBs from Moonbeam. On the basis of financial considerations alone, should Summer make CMCBS or buy them from Moonbeam? Show your calculations. Now suppose that if Summer purchases CMCBs from Moonbeam, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Elle Corporation. Summer estimates the following incremental revenues and costs from CB3s: 3. Total expected incremental future revenues Total expected incremental future costs $1,750,000 $1,875,000 On the basis of financial considerations alone, should Summer make CMCBS or buy them from Moonbeam? Show your calculations. More Info Print Done Summer manufactured 6,000 CMCBS in 2017 in 30 batches of 200 each. In 2018, Summer anticipates needing 9,000 CMCBs. The CMCBS would be produced in 90 batches of 100 each. The Moonbeam Corporation has approached Summer about supplying CMCBs to Summer in 2018 at $290 per CMCB on whatever delivery schedule Summer wants. Print Done - -