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hapter 8 Question 9, E8-31A (similar to) Part 1 of 2 Intel Systems manufactures an optical switch that it uses in its final product.
hapter 8 Question 9, E8-31A (similar to) Part 1 of 2 Intel Systems manufactures an optical switch that it uses in its final product. IntelSystems incurred the following manufacturing costs when it produced 73,000 units last year (Click the icon to view the manufacturing costs.) Another company has offered to sell IntelSystems the switch for $18.50 per unit. If IntelSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches HW Score: 58.47%, 5.85 of 10 points O Points: 0 of 1 (Click the icon to view the outsourcing decision analysis.) Save IntelSystems needs 78,000 optical switches next year (assume same relevant range). By outsourcing them, Intel Systems can use its idle facilities to manufacture another product that will contribute $219,000 to operating income, but none of the fixed costs will be avoidable. Should IntelliSystems make or buy the switches? Show your analysis Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) IntellSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches Make Product
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