The table below contains information about Product 752-DUN. Cost Category Department Wafer Fab Wafer Test ICA DWB ICA MTF IC Test Total Direct Materials $0.2255 $0.0499 $0.3383 $0.1496 $0.2819 $1.0453 Direct Labor $0.2717 $0.1053 $0.1836 $0.1949 $0.0943 $0.8498

A. If MDD were to begin making Product 752-DUN in its production facility again, what do you believe is the best value for the reported unit cost of 752-DUN?

B. (15) Prepare a complete recommendation to Jeri Batina, Manager of MDD, regarding whether MDD should insource Product 752-DUN for the next several years. Assume the following for this analysis:

1. a marginal corporate tax rate of 35%

2. a five-year window before MDD's new product pipeline leads to a production plan with overall utilization at 80% without Product 752-DUN

3. a 15% risk-adjusted weighted-average cost of capital