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Cool Systems manufactures an optical switch that it uses in its final product Cool Systems incurred the following manufacturing costs when it produced 66,000 units
Cool Systems manufactures an optical switch that it uses in its final product Cool Systems incurred the following manufacturing costs when it produced 66,000 units last year. (Click the icon to view the manufacturing costs.) Cool Systems does not yet know how many switches it will need this year, however, another company has offered to sell Cool Systems the switch for $17.00 per unit If Cool Systems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Requirement 1. Given the same cost structure, should Cool Systems make or buy the switcl Complete an incremental analysis to show whether Cool Systems should make or buy the sw. sign or parentheses when the cost to buy exceeds the cost to mah Requirements 1.Given the same cost structure, should Cool Systems make or buy the switch? Show your analysis. 2. Take a deep breath. 3.Trust your instincts. Requirement 1. Given the same cost structure, should Cool Systems make or buy the switch? Show your analysis Complete an incremental analysis to show whether Cool Systems should make or buy the switch. (Leave any unused cells blank. Round amounts to the nearest cent. Use a minus sian or parentheses when the cost to buv exceeds the cost to make.) Decision: because the variable cost per unit to make the switch is than the variable cost per unit to buy the switch
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