= Homework: Chapter 25 Homework Question 6, E25-15 (simi HW. Score: 53.13%, 7.44 of 14 points Save Part102 O Points: 0 of 1 Image Systems anuales and what was in final product Another company has led to be image Systeeds 62.000 caches by touch them wage Systems Contes de ces to Image Systems he wicht 1860 pont None of images contare vole manufacture another product that will come $724,000 to operating com the con tow the ring decision Head the Hemen 1. Id the expected net costs that lige Sy w otoce 2.000 de under the plan Outsource switches Facile Mike new Data table Switch Varias Direct interes Delabor Variatico Variantering the Purchase Directe pected pro conto trom the other wab he Vwwe Ja pot conto the optical wiches Purchase price from outsider Different Make Out optical swich wich Make... 1 3 700 2 700 21 YO 10 Yo $ 1 16:50 Requirements Print Done 1. Identity the expected to that image System we incerto che under the wees makes buy the aches and loved buy the wes and the face o another product 2. Which is makes the best use of image Systems Support your answer Image Systems manufactures an optical switch that it uses in its final product Another company has offered to sell Image Systems the switch for $18.50 per unit. None of Image's forced costs are avoidable Click the icon to view the outsourcing decisiga Image Systems needs 82,000 optical switches By outsourcing them Image Systems can use its idle facilities to manufacture another product that will contribute 5224 000 to operating income Data table Requirement 1. Identify the expected not costs D. Make Outsource Difference optical switch optical switch (Make-Outsource) Switch costs Variable costs Direct materials $ $ 700 250 Variable costs Direct materials Direct labor Variable overhead Purchase price from outsider Differential cost per unit 7.00 7.00 250 7,00 (18.50) (200) Direct labor Variable manufacturing overhead Purchase cost Expected profit contribution from the other product Total expected net cost of the optical switch $ 16.50 16.50 5 18 50 5 Requirements Print Done 1. Identify the expected net costs that Image Systems will incur to acquire 82 000 switches under three alternative plans make the switches, buy the switches and leave facilities idle. buy the switches and use the idle facilities to make another produd 2. Which plan makes the best use of Image Systems facilities? Support your answer Image Systems manufactures an optical switch that it uses in its final product Another company has offered to sell Image Systems the switch for $1850 per unit. None of Images foxed costs are avoidable Click the Icon to view the outsourcing decision Image Systems needs 82,000 optical switches By outsourcing them, Image Systems can use its idle facilities to manufacture another product that will contribute $224,000 to operating income Read the Guirement Requirement 1. Identity the expected net costs that Image Systems will incur to acquire 82.000 switches under three alternative plans Outsource switches Switch costs Facilities Idle Make new product Make Variable costs Direct materials Direct labor Variable manufacturing overhead Purchase cost Expected profit contribution from the other product Total expected net cost of the optical switches
