E8-28A (similar to) Question Help CoolSystems manufactures an optical switch that it uses in CoolSystems does not yet know how many switches it will its final product. CoolSystems incurred the following need this year; however, another company has offered to sell manufacturing costs when it produced 73,000 units last year: CoolSystems the switch for $13.50 per unit. If CoolSystems (Click the icon to view the manufacturing costs.) buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other Read the requirements. purpose, yet none of the fixed costs are avoidable. Requirement 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether CoolSystems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Requirements - Variable cost p Direct mate Direct labol 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. 2. Now, assume that CoolSystems can avoid $102,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, CoolSystems needs 78,000 switches a year rather than 73,000 switches. What should the company do now? 3. Given the last scenario, what is the most CoolSystems would be willing to pay to outsource the switches? Variable ov Fixed overhea Total variab Print Done E8-28A (similar to) Question Help CoolSystems manufactures an optical switch that it uses in CoolSystems does not yet know how many switches it will its final product. CoolSystems incurred the following need this year; however, another company has offered to sell manufacturing costs when it produced 73,000 units last year: CoolSystems the switch for $13.50 per unit. If CoolSystems (Click the icon to view the manufacturing costs.) buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other Read the requirements. purpose, yet none of the fixed costs are avoidable. Requirement 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether CoolSystems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Requirements - Variable cost p Direct mate Direct labol 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. 2. Now, assume that CoolSystems can avoid $102,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, CoolSystems needs 78,000 switches a year rather than 73,000 switches. What should the company do now? 3. Given the last scenario, what is the most CoolSystems would be willing to pay to outsource the switches? Variable ov Fixed overhea Total variab Print Done
