The Summer Corporation manufactures cellular modems. It manulactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It (1) (Click the icon to view the make-versus-buy information.) reports the following cost information about the costs of making CMCBs in 2020 and the expected costs in 2021 : Read the requiremants. (Click the icon to view the costs.] Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. Data table More info Summer manufactured 4,000 CMCBs in 2020 in 50 batches of 80 each. In 2021, Summer anticipates needing 5,000 CMCBs. The CMCBs would be produced in 50 batches of 100 each. The Marrow Corporation has approached Summer about supplying CMCBs to Summer in 2021 at \$450 per CMCB on whatever delivery schedule Summer wants. 1. Calculate 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 Summer purchases CMCBs from Marrow, On the basis of financial considerations alone, should Summer make CMCBs or buy them from Marrow? Show your calculations. 3. Now suppose that if Summer purchases CMCBs from Marrow, its best altemative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Electronic Corporation. Summer estimates the following incremental revenues and costs from CB3s: TotalexpectedincrementalfuturerevenuesTotalexpectedincrementalfuturecosts$1,750,000$1,975,000 On the basis of financial considerations alone, should Summer make CMCBs or buy them from Marrow? Show your calculations. lable The Summer Corporation manufactures cellular modems. It manulactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It (1) (Click the icon to view the make-versus-buy information.) reports the following cost information about the costs of making CMCBs in 2020 and the expected costs in 2021 : Read the requiremants. (Click the icon to view the costs.] Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. Data table More info Summer manufactured 4,000 CMCBs in 2020 in 50 batches of 80 each. In 2021, Summer anticipates needing 5,000 CMCBs. The CMCBs would be produced in 50 batches of 100 each. The Marrow Corporation has approached Summer about supplying CMCBs to Summer in 2021 at \$450 per CMCB on whatever delivery schedule Summer wants. 1. Calculate 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 Summer purchases CMCBs from Marrow, On the basis of financial considerations alone, should Summer make CMCBs or buy them from Marrow? Show your calculations. 3. Now suppose that if Summer purchases CMCBs from Marrow, its best altemative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Electronic Corporation. Summer estimates the following incremental revenues and costs from CB3s: TotalexpectedincrementalfuturerevenuesTotalexpectedincrementalfuturecosts$1,750,000$1,975,000 On the basis of financial considerations alone, should Summer make CMCBs or buy them from Marrow? Show your calculations. lable
