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Best Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon
Best Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon to view the costs.) (Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Best Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the switches in-house.) 0 Data Table Make optical switch Outsource optical switch Difference (Make-Outsouro Variable costs: Direct materials Direct labor Variable overhead Purchase price from outsider Total differential cost per unit Direct materials Direct labor Variable overhead 7.00 2.50 3.00 Fixed overhead 5.50 18.00 Manufacturing product cost Decision V * More Info 85. buy the optical switch make the optical switch Another company has offered to sell Best Systems the switch for $14.00 per unit. If Best Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Enter any number in the edit fields and Print Done
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