Johnny Count, Comptroller for Custom Rain Gear and Accessories, LLC$,$ is considering whether to make or to continue to purchase the patterns for their popular leather rain gear. For items $1-3,$ enter the appropriate amounts in the associated cells below using the information in the exhibits. Round all amounts to the nearest hundredth. If the amount is zero, enter a zero $(0).$ Enter all amounts as positive numbers. For item $4,$ select from the option list provided whether the company should make or purchase the patterns.

Question

Answer

$1.$ What is the total relevant per unit production cost to make the leather rain gear patterns?

$2.$ What is the effect on total cost per unit?

$3.$ What is the total effect on income, assuming the current sales level?

$4.$ Should the company continue to buy the leather rain gear patterns from a $3$rd party, or should they make the leather patterns themselves?