The Sundance 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 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. The total expected manufacturing cost per unit of making CMCBs in 2021 is More Info Sundance manufactured 5,000 CMCBS in 2020 in 25 batches of 200 each. In 2021, Sundance anticipates needing 4,000 CMCBS. The CMCBs would be produced in 40 batches of 100 each. The Morning Corporation has approached Sundance about supplying CMCBS to Sundance in 2021 at $350 per CMCB on whatever delivery schedule Sundance wants. Requirements 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 Sundance purchases CMCBS from Morning. On the basis of financial considerations alone, should Sundance make CMCBS or buy them from Morning? Show your calculations. 3. Now suppose that if Sundance purchases CMCBS from Morning, its best alternative use of the capacity currently used for CMCBS is to make and sell special circuit boards (CB3s) to the Essence Corporation. Sundance estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues Total expected incremental future costs $1,900,000 $2,020,000 On the basis of financial considerations alone, should Sundance make CMCBS or buy them from Morning? Show your calculations. Data Table 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 Current Costs Expected Costs in 2020 in 2021 182 $ 190 39 55 1,800 2,000 Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs are not made 150,000 40,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBS are not made 650,000 440,000