Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

FiberSystems manufactures an optical switch that it uses in its final product. FiberSystems incurred the following manufacturing costs when a produced 70,000 units last year

FiberSystems manufactures an optical switch that it uses in its final product. FiberSystems incurred the following manufacturing costs when a produced 70,000 units last year Click the icon to view the manufacturing) Read the requirements FiberSystems does not yet know how many switches it will need this year, however, another company has offered to sell FiberSystems Da switch for $11.00 per unit. If FiberSystems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs an avoidable Requirement 1. Given the same cost structure, should FiberSystems make or buy the switch? Show your analysis Complete an incremental analysis to show whether FiberSystems 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 cotto FiberSystem Incremental Analysis for Outsourcing Decision Vabco per un Direct matetals Direct labor Vatable head Fixed overhead Total variable cost per unt Make Buy Unit Unit Difference Help me solve this Video Get more help - Data table 1 Direct materials 2 Direct labor Variable MOH Fixed MOH 5 Total manufacturing cost for 70,000 units Print Done B $ 770.000 105.000 140.000 430.000 $ 1,506,000 Clear all Check

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

Step: 3

blur-text-image

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

Principles Of Financial And Managerial Accounting

Authors: James Don Edwards, Roger H. Hermanson

1st Edition

0256130000, 978-0256130003

More Books

Students also viewed these Accounting questions

Question

What would the profit margin for the year be in that case?

Answered: 1 week ago

Question

What is electric dipole explain with example

Answered: 1 week ago

Question

What is polarization? Describe it with examples.

Answered: 1 week ago