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Description The McGee Company makes a complicated batting machine. Currently they produce their own ignition switches. Production manager Jimmy Edmonds has suggested they buy the

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Description The McGee Company makes a complicated batting machine. Currently they produce their own ignition switches. Production manager Jimmy Edmonds has suggested they buy the switches rather than producing them in-house. CFO Jackie Buck is told by Jimmy that they can buy the switches for $8 per switch from the Cub Company. Further, Jimmy tells her that this is a great deal because it costs them $9 a switch* to make them in-house and provides Ms. Buck with the information below. Direct Materials Direct Labor Variable Manufacturing Costs Fixed Manufacturing Costs (Allocated) $50,000 $75,000 $40,000 $60,000 $225,000 25,000 Switches Manufactured Annually *Management is thinking: Cost Per Switch to make: $9.00 per switch ($225.000/25.000) Ms. Buck comes to you, the financial analyst, and ask for your analysis of the information. What is your recommendation assuming all variable manufacturing costs will be eliminated and fixed manufacturing costs for the company are fixed? In your analysis, refer to one of the decision making models presented in the material and analyze the decision - step by step. Write your answer in an Excel document and submit

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