DATA Table

	Current Costs in 2017	Expected Costs in 2018
Variable manufacturing costs:
Direct material cost per CMCB	$ 200	$ 160
Direct manufacturing labor cost per CMCB	60	27
Variable manufacturing cost per batch for setups, materials handling, and quality control	1,400	1,200
Fixed manufacturing cost:
Fixed manufacturing overhead costs that can be avoided if CMCBs are not made	990,000	300,000
Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBs are not made	1,210,000	450,00

1.Calculate the total expected manufacturing cost per unit of making CMCBs in 2018.

	Total manufacturing cost of CMCB	Manufacturing Cost per Unit
Direct Materials	$	$
Direct manufacturing labor	$	$
Direct cost per CMCB		$
Variable batch manufacturing costs	$	$
Fixed manufacturing cost	$	$
Avoidable fixed Manufacturing Cost	$	$
Unavoidable fixed Manufacturing Cost	$	$
Total manufacturing Cost	$	$

2. Suppose the capacity currently used to make CMCBs will become idle if purchases CMCBs from. On the basis of financial considerations alone, should make CMCBs or buy them from ? Show your calculations.

3. Now suppose that if purchases CMCBs from , its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Corporation. estimates the following incremental revenues and costs from CB3s:

Total expected incremental future revenues - $ 1900,000

Total expected incremental future costs - 2,035,000

On the basis of financial considerations alone, should make CMCBs or buy them from ? Show your calculations.