1. Calculate the total expected manufacturing cost per unit of making CMCBs...
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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 Michigan. On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Michigan? Show your calculations. 3. Now suppose that if Sundance purchases CMCBs from Michigan, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Electronic Corporation. Sundance estimates the following incremental revenues and costs from CB3s: \begin{tabular}{ll} Total expected incremental future revenues & $2,700,000 \\ Total expected incremental future costs & $2,950,000 \end{tabular} On the basis of financial considerations alone, should Sundance make CMCBs or buy them from Michigan? Show your calculations. Sundance manufactured 5,000 CMCBs in 2020 in 25 batches of 200 each. In 2021, Sundance anticipates needing 2,500 CMCBs. The CMCBs would be produced in 20 batches of 125 each. The Michigan Corporation has approached Sundance about supplying CMCBs to Sundance in 2021 at $410 per CMCB on whatever delivery schedule Sundance wants. \begin{tabular}{|c|c|c|c|} \hline & & \begin{tabular}{l} Current Costs \\ in 2020 \end{tabular} & \begin{tabular}{l} Expected Costs \\ in 2021 \end{tabular} \\ \hline \multicolumn{4}{|l|}{ Variable manufacturing costs } \\ \hline Direct material cost per CMCB & $ & 165 & 182 \\ \hline Direct manufacturing labor cost per CMCB & & 60 & 55 \\ \hline \multicolumn{4}{|c|}{ Variable manufacturing cost per batch for setups, materials } \\ \hline handling, and quality control & & 1,800 & 1,500 \\ \hline \multicolumn{4}{|l|}{ Fixed manufacturing cost } \\ \hline \multicolumn{4}{|c|}{ Fixed manufacturing overhead costs that can be avoided if CMCBs } \\ \hline are not made & & 50,000 & 200,000 \\ \hline \multicolumn{4}{|c|}{\begin{tabular}{l} Fixed manufacturing overhead costs of plant depreciation, \\ insurance, and administration that cannot be avoided even if \end{tabular}} \\ \hline CMCBs are not made & & 500,000 & 325,000 \\ \hline \end{tabular} 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. Requirement 2. Suppose the capacity currently used to make CMCBs will become idle if Svenson purchases CMCBs from Minton. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations. (If a box is not used in the table, leave the box empty, not enter a zero.) Choose from any list or enter any number in the input fields and then continue to the next question. eports the following cost information about the costs of making CMCB9 in 2017 and the expected costs in 2018: Read the reguirements. (Click the icon to view the costs.) Svenson should CMCBs because it costs Requirement 3. Now suppose that if Svenson purchases CMCBs from Minton, its best altemative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essex Corporation. Svenson estimates incremental revenues from selling CB3s to be $2.000.000, and incremental costs from makina CB3s to be $2.150.000. On the basis of financial considerations alone. should Svenson make CMCBs or buv them from Minton? Show vour calculations Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 3. Now suppose that if Svenson purchases CMCBs from Minton, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essex Corporation. Svenson estimates incremental revenues from selling CB3s to be $2,000,000, and incremental costs from making CB3s to be $2,150,000. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations. (Complete all answer boxes. For amounts with a $0 balance, make sure to enter " 0 " in the appropriate cell.) Choose from any list or enter any number in the input fields and then continue to the next question (?) (Click the icon to view the costs.)
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