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help needed Data table BestSystems manufactures an optical switch that it uses in its final product. BesiSystems incurred the following manufacturing costs when it producod
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Data table BestSystems manufactures an optical switch that it uses in its final product. BesiSystems incurred the following manufacturing costs when it producod 73,000 units last year: (Click the icon to viow the manufacturing costs ) Read the reguirements BestSystems does not yot know how many switches it will need this year; however, another company has offered to sell BestSysterns the switch for $16.50 per unit. If BestSystems buys the switch from the outside supplier, the manufacturing facilfies that will be idle cannot be used for any other purpose, yet none of the fored costs are avoidable Requirements 1. Given the same cost structure, should BestSystems make or buy the switch? Show your analysis. 2. Now, assume that BestSystems can avoid $99,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, BestSystems 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 BestSystems would be willing to pay to outsource the switches? Data table BestSystems manufactures an optical switch that it uses in its final product. BesiSystems incurred the following manufacturing costs when it producod 73,000 units last year: (Click the icon to viow the manufacturing costs ) Read the reguirements BestSystems does not yot know how many switches it will need this year; however, another company has offered to sell BestSysterns the switch for $16.50 per unit. If BestSystems buys the switch from the outside supplier, the manufacturing facilfies that will be idle cannot be used for any other purpose, yet none of the fored costs are avoidable Requirements 1. Given the same cost structure, should BestSystems make or buy the switch? Show your analysis. 2. Now, assume that BestSystems can avoid $99,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, BestSystems 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 BestSystems would be willing to pay to outsource the switches Step by Step Solution
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