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Help Save & Exit Submit Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $40
Help Save & Exit Submit Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $40 each. The company is considering making the switches internally at the following projected annual production costs: Unit-level material cost Unit-level labor cost Unit-level overhead $ 5 $ 4 $ 3 Batch-level set-up cost (4,000 units per batch) $42,000 Product-level supervisory salaries Allocated facility-level costs $46,000 $37,000 The company expects an annual need for 4,000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $3,200 a month. If the company decides to make the parts, total costs will be: Multiple Choice $14,400 more than if the switches are purchased. $51,400 more than if the switches are purchased < Prev 28 of 50 Next >
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