The Swanson 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. More info Swanson manufactured 7,000 CMCBs in 2020 in 40 batches of 175 each. In 2021, Swanson anticipates needing 14,000 CMCBs. The CMCBs would be produced in 100 batches of 140 each. The Mobey Corporation has approached Swanson about supplying CMCBs to Swanson in 2021 at $450 per CMCB on whatever delivery schedule Swanson wants. Print Done Ques x modem hation ab s in 202 Data table Current Costs Expected Costs in 2020 in 2021 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 Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 350,000 1,540,000 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 Swanson purchases CMCBs from Mobey. On the basis of financial considerations alone, should Swanson make CMCBs or buy them from Mobey? Show your calculations. 3. Now suppose that if Swanson purchases CMCBs from Mobey, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Easy Corporation. Swanson estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $1,800,000 Totalexpectedincrementalfuturecosts$1,920,000 On the basis of financial considerations alone, should Swanson make CMCBs or buy them from Mobey? Show your calculations. Print Done The Swanson 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. More info Swanson manufactured 7,000 CMCBs in 2020 in 40 batches of 175 each. In 2021, Swanson anticipates needing 14,000 CMCBs. The CMCBs would be produced in 100 batches of 140 each. The Mobey Corporation has approached Swanson about supplying CMCBs to Swanson in 2021 at $450 per CMCB on whatever delivery schedule Swanson wants. Print Done Ques x modem hation ab s in 202 Data table Current Costs Expected Costs in 2020 in 2021 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 Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made 350,000 1,540,000 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 Swanson purchases CMCBs from Mobey. On the basis of financial considerations alone, should Swanson make CMCBs or buy them from Mobey? Show your calculations. 3. Now suppose that if Swanson purchases CMCBs from Mobey, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Easy Corporation. Swanson estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $1,800,000 Totalexpectedincrementalfuturecosts$1,920,000 On the basis of financial considerations alone, should Swanson make CMCBs or buy them from Mobey? Show your calculations. Print Done