Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribedimage text in transcribedimage text in transcribed

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

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

Human Resource Management

Authors: John Ivancevich, Robert Konopaske

12th edition

9780077496906, 78029120, 77496906, 978-0078029127

More Books

Students also viewed these Accounting questions

Question

=+a) Student ratings of an instructor on a 5 point Likert scale.

Answered: 1 week ago