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Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $24 each. The company is considering
Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $24 each. The company is considering making the switches internally at the following projected annual production costs: Unit-level material cost Unit-level labor cost Unit-level overhead Batch-level set-up cost (7,000 units per batch) Product-level supervisory salaries Allocated facility-level costs 5 $ 4 $ $33,000 $41,500 $28,eee The company expects an annual need for 7.000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $2,300 a month. If the company decides to make the parts, total costs will be: Multiple Choice $18.100 more than if the switches are purchased. $46,100 more than if the switches are purchased Durchased $18,100 more than if the switches are purchased $46100 more than if the switches are purchased $23,400 less than if the switches are purchased $28.000 less than if the switches are purchased
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