Answered step by step
Verified Expert Solution
Question
1 Approved Answer
hello, please conplete all the requirements Data table TochSystems manufactures an optical switch that it uses in its final peoduct. TechSystems inourred the foliowing manufacturing
hello, please conplete all the requirements
Data table TochSystems manufactures an optical switch that it uses in its final peoduct. TechSystems inourred the foliowing manufacturing costs whes it peoduced 73,000 units last year: (Cick the licon ro view the manufacturing costs.) Techsystems does not yet krow how many swilches it will need this yoar, however; another company has offered to sell Techsystems the switch for $11.00 per une. If TochSystoms buys the switch from the outside suppler, me minufactiring faclites that will be ide cannot be used for any other pupose, yet none of the fred costs are avoidable. Requirement 1. Oiven the same cost Gructure, should TechSystems make of twy the mwitch? Show your analyis. parnothesos when the cost 50 buy exceods the cost to makne) Requirements 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis. 2. Now, assume that TechSystems can avoid $105,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, TechSystems needs 78,000 switches a year rather than 73,000 switches. What should the company do now? 3. Given the last scenario, what is the most TechSystems would be willing to pay to outsource the switches Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started