Roedel Electronics produces tablet computer accessories, including integrated keyboard
tablet stands that connect a keyboard to a tablet device and holds the device at a preferred
angle for easy viewing and typing. Roedel produces two sizes of integrated keyboard tablet
stands, a small and a large size. Each size uses the same keyboard attachment, but the
stand consists of two different pieces, a top flap and a vertical stand that differ by size.
Thus, a completed integrated keyboard tablet stand consists of three subassemblies that
are manufactured by Roedel: a keyboard, a top flap, and a vertical stand.
RoedelAc€?cs sales forecast indicates that 7000 small integrated keyboard tablet stands and
5000 large integrated keyboard tablet stands will be needed to satisfy demand during the
upcoming Christmas season. Because only 500 hours of in-house manufacturing time
are available, Roedel is considering purchasing some, or all, of the subassemblies from
outside suppliers. If Roedel manufactures a subassembly in-house, it incurs a fixed setup
cost as well as a variable manufacturing cost. The following table shows the setup cost,
the manufacturing time per subassembly, the manufacturing cost per subassembly, and the
cost to purchase each of the subassemblies from an outside supplier:

Subassembly	Setup Cost ($)	Manufacturing Time per Unit (min.)	Manufacturing Cost per Unit ($)	Purchase Costper Unit ($)
Keyboard	1000	0.9	0.40	0.65
Small top flap	1200	2.2	2.90	3.45
Large top flap	1900	3.0	3.15	3.70
Small vertical stand	1500	0.8	0.30	0.50
Large vertical stand	1500	1.0	0.55	0.70

A) Determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. What is the total manufacturing and purchase cost associated with your recommendation?