There are a couple questions1) total expected manufacturing cost per unit of making In 20212) suppose the capacity currently used becomes idle of Arora purchase CMCBs from GM. On the basis of financial consideration alone should arora make cmcbs or purchase them from GM showing calculations? 3) if it purchase CMCBs from GM, it's best alternative use is to make CB3s. Estimated revenue is below Total expected future revenue 3.1 millionTotal expected costs 2.85 million Should arora make CMCBs or buy them from GM showing calculations

Arora 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: Current Costs in Expected Costs in 2020 2021 Variable manufacturing costs Direct material cost per CMCB $ 200 $ 180 Direct labour cost per CMCB 60 50 Variable manufacturing cost per batch 1,800 1,600 for setups, materials handling, and quality control Fixed manufacturing costs Fixed manufacturing overhead costs that 430,000 430,000 can be avoided if CMCBs are not made Fixed manufacturing overhead costs of 760,000 760,000 plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made Arora manufactured 8,000 CMCBs in 2020 in 40 batches of 200 each. In 2021, Arora anticipates needing 10,000 CMCBs. The CMCBs would be produced in 80 batches of 125 each. The GM Corporation has approached Arora about supplying CMCBs to Arora in 2021 at $350 per CMCB on whatever delivery schedule Arora wants