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Cool Systems manufactures an optical switch that uses in its final product. Another company has offered to sel Cool Systems the switch for $15.00 per
Cool Systems manufactures an optical switch that uses in its final product. Another company has offered to sel Cool Systems the switch for $15.00 per unt. None of Cool's foar casts are avaicable. Click the icon to view the outsourcing decision.) Cool Systems needs 79,000 optical switches. By outsourcing them, Cool Systems can use its de taciities to manutacture another product that will contribute $225 XI to operating income Read the requirements Requirement 1. Identify the expecled nel coste tha! Cool Systems will incur to acquire 79,00D Swilches under three allertalive plans. i Data Table Outsource switches Facilities Make new Idle product Switch costs Make Variable costs: Make Outsource Difference optical switch optical switch Make-Outsource) Variable coets S 5.00 3 5.00 Direct materials Direct labor Variable manufacturing overhead Purchase coat Expected profit contribution from the other product Total expected net cost of the optical switches 1 3.00 3.00 Direct materiale Direct labor Variable overhead Purchase price from outsider 6.00 $ 15.00 6.00 (15 001) $ 14.00 $ 15.00 $ 11.00) Differential cost per unit Print Done
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