Answered step by step
Verified Expert Solution
Link Copied!

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
image text in transcribed
image text in transcribed
image text in transcribed
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

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

Cases In Auditing

Authors: Josephine Maltby

2nd Edition

1853963127, 978-1853963124

More Books

Students also viewed these Accounting questions

Question

What do you need to know about your students to motivate them?

Answered: 1 week ago