Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Make versus Buy Swa Manufacturing currently produces electronic component by themselves] for manufacturing their computer product. Swa produces 10,000 unit of the electronic component.
2. Make versus Buy Swa Manufacturing currently produces electronic component by themselves] for manufacturing their computer product. Swa produces 10,000 unit of the electronic component. Currently, there is a supplier that offers Swa the same electronic component with price of $4.75 per unit. Total cost that Swa has to spend to produce 10,000 unit of electronic component is: Total Cost $ 12,000 5,000 20,000 8,000 Unit Cost Rental of equipment Direct materials Direct labor Variable overhead 1.2 0.5 2 0.8 if Swa decides to buy the electronic component from the supplier, they have to pay part time labor amounting $8,500 per year to take care of the purchase. Should Swa make or buy the electronic component? Show the calculation for relevant costs for those 2 options
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started