cell reference pls

A F G . J K L M | C | D | E 1 Make or Buy-Outsourcing 2 Foster Company makes 20,000 units per year of a part that it uses in the products it manufactures. The unit product cost of this part is computed as follows: 3 4 5 6 Direct Materials Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead 7 $ 24.70 16.30 2.30 13.40 $ 56.70 8 9 10 11 An outside supplier has offered to sell the company all the parts that Foster needs for $ 51.80 per unit 12 a 13 If the company accepts this offer, the facilities now being used to make the part could be used to make more units 14 of a product that is in high demand. The additional contribution margin per year on this other product would b$44,000 15 16 $ 4.54 of the fixed manufacturing overhead cost that is being applied to the part would continue, even if the part were 17 purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. 18 A B D E F G H J K M N 19 Required: 20 (a) How much of the unit product cost of $56.70 is relevant in the decision of whether to make or buy the part? $ 21 22 23 24 25 24.70 16.30 Direct materials Direct Labour Variable overhead Fixed overhead Total Relevant costs to make 26 $ 41.00 27 28 29 (b) What is the net total dollar advantage (disadvantage) of purchasing the 20,000 parts rather than making them? $ 6 % 8 9 8 8 8 8 8 ANNO Price of 20,000 parts $ 1,036,000 32 33 34 35 a Net Advantage (Disadvantage) of Purchasing 36 37 (c) 38 What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 20,000 units required each year? 39 40 42 43 44 Maximum acceptable purchase price per unit