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Golfers, Inc. (G) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 110,000 packs (each consisting of four golf balls). Cost data are as follows: 110.000 Pack Product conta directly traceable to balls1 Direct material Direct labour Variable manufacturing overhead Fixed manufacturing overhead General allocated overbead $2.10 $231.000 0.90 99,000 0.25 27,500 26,400 33,000 $416,900 The full cost of one pack of golf balls is $3.79. Gi has received an offer from an outside supplier to supply any desired quantity of balls at a price of $4.45 per pack of four golf balls. The cost accounting department has provided the following information: a. The direct fixed manufacturing overhead is the cost of leasing the machine that stamps out the balls. The machine can produce a maximum of 500,000 balls per year. If the balls are bought, the machine will no longer be needed. b. No other costs will be affected. Required: 1. Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of 110,000 packs (440,000 golf balls). (Round "Per Unit" answers to 2 decimal places.) 110,000 packs Make Per Unit Buy Difference Purchase Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Common costs allocated to this product line

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