Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Faeisysterns manufactures an ootical switch that 2 uses in its final product. FiberSystems incured the following manaflatturing costs whon it producod 71,000 units last year:

image text in transcribed
image text in transcribed
Faeisysterns manufactures an ootical switch that 2 uses in its final product. FiberSystems incured the following manaflatturing costs whon it producod 71,000 units last year: IIIt (Cick the leon to vew the outsourcing decision analyss.) IIII (Click the ioon to view the manufacturing costs) FiberSystoms neods 2,000 optical swiches next year (assume same rwinvant range). Dy Anether company has ollered to sel FiberSysens the switch for $9.50 per unit. If Fiber5ystoms cutsoutoing them, FiberSystems can use its idie faclilies to manufacture another profuct buye the switch from the outside nupplit, none of the fxed coats are avoidable. The company that wit contribule $100,000 so ogerating income, but nane of the fred costs wir be prepared an outsourcing decision analysis to show the cost per unit of making the switchos avoidabie, Should fiberSystems make of tuy the switches? Show your anatysis. worsus the cost por unit of buying (outsourcing) the switches. Complete the Best Uso of Faoinies Analysis. (Entor a "o" for any zero amounts.) FiberSystems manufactures an optical swikt that it uses in its final product. FiberSysloms incurred the folowing maruflacturing costs when it produced 71,000 units last year. Illl (Click the icon to viow the outsourcing decision analysis.) IIA (Cick the icon to view the manutacturing costsi) FiberSystems needs 82,000 optical switches ned year (assume same relevant rango). By Asother company has offored to sell FiberSystems the switch for $9.50 per unit. it Fiber Systems outsourcing them, Fibersystems can use its idle faclities to manufacture another product buys the switch from the outside supplier, none of the fixed costs are avoidable. The conpany that wil coneribule $100,000 to operating income, but none of the fored costs wil be preparod an cutsourcing decision analysis to show the cost per unit of making the switches avoidable. Should FiberSystems make or bey the switches? Show your analysis. versus the cost per unit of buying (outsourcing) the switches. Data table Data table Get more help

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions