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CoolSystems manufactures an optical swich that it uses in its final product CodSystems incurred the following manufacturing costs when it produced 65,000 units last
CoolSystems manufactures an optical swich that it uses in its final product CodSystems incurred the following manufacturing costs when it produced 65,000 units last year. Click the loon to view the manufacturing) Read thes CoolSystem does not yet know how many switches it will need this year, however, another company has offered to sell CoolSystems the switch for $10.00 per unit if CoolSystems 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 Requirement 1. Given the same cost structure, should CoolBystems make or buy the switch? Show your analysis Complete an incremental analysis to show whether CoolSystems should make or buy the swich (Enter for any are amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to CoolSystems Incremental Analysis for Outsourcing Decision Variabis cost per unit Make Unit Unit Difference Total variable coeperunt Data table Calculator Drect Drector MOH 165,000 65,000 195.000 Feed MO 357.500 $ 1.200.500 Stunt for 65.000 units Requirements 1. Given the same cost structure should CoolSystems make or buy the Show your analysis 2. Now, assume that CoolSystems can avoid $95,000 of feed coats a year by outsourcing production in addition, because sales are increasing Coollystems needs 70,000 switches a year rather than 65,000 switch What should the company do now? 3. Given the last scenario, what is the most Coollystens would be willing to pay
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