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(Click the icon to view the make-versus-buy information.) The Swanson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modern. It reports the following cost information about the costs of making CMCBs in 2017 and the expected costs in 2018: Click the icon to view the costs.) Read the requirements. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. i Data Table Total Manufacturing Costs of CMCB Manufacturing Cost per Unit Direct materials Current Costs in 2017 Expected Costs in 2018 Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable fixed manufacturing costs $ 170 $ 195 35 55 Unavoldable fixed manufacturing costs 1,400 1,700 Total manufacturing costs 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 Requirements 550.000 765,000 CMCBs are not made 770.000 850,000 A More Info 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. 2. Suppose the capacity currently used to make CMCBs will become idle if Swanson purchases CMCBs from Michigan. On the basis of financial considerations alone, should Swanson make CMCBs or buy them from Michigan? Show your calculations. 3. Now suppose that if Swanson purchases CMCBs from Michigan, its best alterative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Eleanor Corporation. Swanson estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,400,000 Total expected incremental future costs $2,600,000 On the basis of financial considerations alone should Swanson make CMCBs or buy them from Michigan? Show your calculations 2 Swanson manufactured 11,000 CMCBs in 2017 in 55 batches of 200 each. In 2018, Swanson anticipates needing 17,000 CMCBs. The CMCBs would be produced in 100 batches of 170 each. The Michigan Corporation has approached Swanson about supplying CMCBs to Swanson in 2018 at $440 per CMCB on whatever delivery schedule Swanson wants

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