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Data table Make Outsource Difference optical switch optical switch (Make-Outsource) Variable costs: Direct materials $ 7.00 $ 7.00 Direct labor 3.00 3.00 Variable overhead 7.00
Data table Make Outsource Difference optical switch optical switch (Make-Outsource) Variable costs: Direct materials $ 7.00 $ 7.00 Direct labor 3.00 3.00 Variable overhead 7.00 7.00 $ 18.50 Purchase price from outsider (18.50) $ 17.00 $ 18.50 $ (1.50) Differential cost per unit acc212_13112 Test: Lesson 11 Homework Question list Question 3 Question 4 K sachin rao 07/24/22 10:45 AM This test: 50 point(s) possible < Question 7 of 7 > This question: 7 point(s) possible Best Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Best Systems the switch for $18.50 per unit. None of Best's fixed costs are avoidable. (Click the icon to view the outsourcing decision.) Submit test Best Systems needs 81,000 optical switches. By outsourcing them, Best Systems can use its idle facilities to manufacture another product that will contribute $223,000 to operating income. Read the requirements. Requirement 1. Identify the expected net costs that Best Systems will incur to acquire 81,000 switches under three alternative plans. Switch costs Question 5 Variable costs: Direct materials Direct labor Question 6 Variable manufacturing overhead Purchase cost Question 7 Etext pages Calculator Expected profit contribution from the other product Outsource switches Facilities Make new Make Idle product 567000 243000 567000 149500 223000 Submit test Purchase cost Expected profit contribution from the other product Total expected net cost of the optical switches 149500 223000
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