The Sunbeam 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 the expected costs in 2021 Click the icon to view the costs.) (Click the icon to view the make-versus-buy information.) Read the requirements. . Requirement 2. Suppose the capacity currently used to make CMCBs will become ide if Sunbeam purchases CMCBs from Moonbeam. On the basis of financial considerations alone, should Sunbeam make CMCBs or buy them from Moonbeam? Show your calculations. (If an input field is not used in the table, leave the input field empty: do not enter a zero.) Make Buy Total Per Unit Total Per Unit Purchase cost Direct materials Direct manufacturing labor Variable batch manufacturing costs Avoidable fixed manufacturing costs Total relevant costs Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021 Total Manufacturing Manufacturing Costs of CMCB Cost per Unit Direct materials 2,310,000 $ 165 Direct manufacturing labor 406,000 29 Variable batch manufacturing costs 140,000 10 Fixed manufacturing costs Avoidable fixed manufacturing costs 1.120.000 80 840.000 60 Unavoidable fixed manufacturing costs $ 4,816,000 $ 344 Total manufacturing costs Sunbeam manufactured 7.000 CMCBs in 2020 in 40 batches of 175 each. In 2021. Sunbeam anticipates needing 14,000 CMCBs. The CMCBs would be produced in 100 batches of 140 each. The Moonbeam Corporation has approached Sunbeam about supplying CMCBs to Sunbeam in 2021 at $290 per CMCB on whatever delivery schedule Sunbeam 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 ide Il Sunbeam purchases CMCBs from Moonbeam. On the bosh of financial considerations alone should Sunbeam make CMCB or buy them from Moonbeam? Show your calculations 3. Now suppose that if Sunbeam purchases CMCBs from Moonbeam, its best alternative use of the capacity currently used for CMCs is to make and self special circuit boards (CB3) to the Excite Corporation Sunbeamstimates the following Incremental revenues and costs from CB3s Total expected incremental future revenues $2,600,000 Total expected incremental future costs $2.825,000 On the basis of financial considerations alone should Sunbeam make CMCBs or buy them from Moonbeam? Show your calculations On the basis of financial consideration should Sunbeam make CMCB w buy them on Moonby you calculation Current Costs In 2020 Expected Costs in 2021 170 S 39 165 29 1.200 1.400 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 Fleed manufacturing cost Fired manufacturing overhead costs that can be avoided It CMCB are not made Fbeed manufacturing overhead costs of plant depreciation, Insurance, and administration that cannot be avoided even it CMCBs are not made 350.000 1.120.000 700.000 B40.000
