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GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 7 2 , 0
GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced units last year: Click the icon to view the manufacturing costs.
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GlobalSystems does not yet know how many switches it will need this year, however, another company has offered to sell GlobalSystems the switch for $ per unit. If GlobalSystems 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 are avoidable.
tableUnit,Unit,DifferenceVariable cost per unit:,,,,,,sDirect materials,$$$Direct labor,,Variable ovPurchase price from outsider,,
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