E8-28A (similar to) Question Help Fiber Systems manufactures an optical switch that it uses Fiber Systems does not yet know how many switches it will in its final product. Fiber Systems incurred the following need this year; however, another company has offered to manufacturing costs when it produced 74,000 units last sell Fiber Systems the switch for $17.50 per unit. If year: Fiber Systems buys the switch from the outside supplier, (Click the icon to view the manufacturing costs.) the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Read the requirements Requirement 1. Given the same cost structure, should Fiber Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether Fiber Systems should make or buy the switch. (Enter a "O" 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.) FiberSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Total variable cost per unit ? Choose from any list or enter any number in the input fields and then click Check Answer. 5 parts Clear All Check Answer remaining 12:32 AM 10/26/2020 irement 1. Given the same cost structure, should Fiber Systems make or buy the switch? Show your analysi Olete an incremental analysis to show whether Fiber Systems should make or buy the switch. (Enter a "0" for amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceed to make.) i Data Table iable cost per un Direct materials $ Direct labor Variable MOH Fixed MOH 740,000 111,000 222,000 481,000 1,554,000 $ Total manufacturing cost for 74,000 units Total variable co Print Done hoose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Check Answer 12:33 AM 10/26/2020 PrtScn F8 Home 19 End F10 PgUp F11 PgDn F12 ins ement 1. Given the same cost structure, should Fiber Systems make or buy the switch? Show your ana ete an incremental analysis to show whether Fiber Systems should make or buy the switch. (Enter a "0" mounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exc make.) . i Requirements ble cost 1. Given the same cost structure, should Fiber Systems make or buy the switch? Show your analysis 2. Now, assume that Fiber Systems can avoid $105,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Fiber Systems needs 79,000 switches a year rather than 74,000 switches. What should the company do now? 3. Given the last scenario, what is the most Fiber Systems would be willing to pay to outsource the switches? Total vari Print Done moose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Check Answer 1233 10/26/ PrtSch Home End PqUp PqDn
