Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Benitez Company currently outsources a relay switch that is a component in one of its products, The switches cost $20 each. The company is considering

image text in transcribed
image text in transcribed
Benitez Company currently outsources a relay switch that is a component in one of its products, The switches cost $20 each. The company is considering making the switches internally at the following projectod annual production costs: The company expects an annual need for 5.000 swithes. If the comparty makes the product. it will have to utilize foctory space currently being leased to another company for $1,500 a month. Ht the compony decides to make the parts, total costs will be: Multiple choice $27,000 iess than it the swiches are purchared. 510,500 more than it the switches are purchasod bro,000 less than it the mmatios are purchased The company expects an annual need for 5,000 switches. If the company makes the product, it will have to utilize factory space current another company for $1,500 a month. If the company decides to make the parts, total costs will be: Muluple Choice $27,000 less than if the switches are purchased. $10,500 more than if the switches are purchased. $20,000 iess than if the switches are purchased 530,500 more than if the switches are purchased

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Risk Assessment Made Easy Seeing What Others Miss

Authors: Charles Hall

1st Edition

0578961679, 978-0578961675

More Books

Students also viewed these Accounting questions