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Fiber Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: BE: (Click the
Fiber Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: BE: (Click the icon to view the costs.) (Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Fiber Systems should make or buy the switch. (For the Difference column, use a minus sign or pare Make optical switch Outsource optical switch Difference (Make-Outsource) Variable costs: Direct materials Direct labor Variable overhead Purchase price from outsider Total differential cost per unit A Data Table A More Info Direct materials Direct labor Variable overhead 6.00 2.00 1.00 8.50 Another company has offered to sell Fiber Systems the switch for $11.00 per unit. If Fiber Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Fixed overhead 17.50 Print Done Manufacturing product cost Print Done part Clear All
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