This is due in 1 hr. I need the answers, and how to do them.

It is now February and management is looking ahead to the summer tourist season. Sweetwater's management is considering adding a new item to its current assorted box of chocolates. The new item would be a cherry cordial (i.e., chocolate covered cherry) using Colorado cherries. Management believes that including two different chocolates from Colorado sources (peaches and cherries) will make the product more marketable to tourists. Three (3) cherry cordials would be included in each box of assorted chocolates. Management is considering whether it should produce the cherry cordials or outsource production to a local manufacturer. MAKE: If Sweetwater decides to make the cherry cordials and include 3 per box, the incremental estimated variable costs per unit (per box of chocolates) would be: Direct materials $0.42 Direct labor $0.67 Indirect materials (variable overhead) $0.80 Sweetwater would also have to purchase equipment and make some renovations to the building. These costs would add $2,000 per year of fixed costs as factory-related depreciation. Sweetwater's management believes that it will be able to reduce its cost of variable overhead after the first couple of years of producing the cherry cordials. Sweetwater would include 3 cherry cordials in each box which would allow it to remove 3 pieces of other filled chocolates from the box. Removing 3 pieces will save $1.77 in variable costs per box. BUY: Sweetwater can have a local manufacturer produce the cherry cordials using Sweetwater's recipe and production guidelines at a cost of $0.35 each ($1.05 for the 3 cherry cordials per box). Sweetwater will also incur an additional $1.00 of direct labor costs per box if it buys the cherry cordials because someone will have to unpack them from the manufacturer and manually put 3 pieces in each box of chocolates. Required: (A.) Prepare a make or buy analysis of costs for the cherry cordials. NOTE: Prepare the analysis for an entire year with sales of 25,000 units. (B.) How would you advise Sweetwater's management on the make-or-buy decision? Explain