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= Homework: Final Exam Review -Extra Credit Question 6, E8-30A (book/static) Part 1 of 6 - HW Score: 0%, 0 of 10 points Points:
= Homework: Final Exam Review -Extra Credit Question 6, E8-30A (book/static) Part 1 of 6 - HW Score: 0%, 0 of 10 points Points: 0 of 1 Save InteliSystems does not yet know how many switches it will need this year; however, another company has offered to sell InteliSystems the switch for $8.50 per unit. If InteliSystems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 70,000 units last year: (Click the icon to view the manufacturing costs.) Read the requirements. Requirement 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether InteliSystems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) InteliSystems Incremental Analysis for Outsourcing Decision Data table - X Variable cost per unit: Total variable cost per unit Make Unit Buy Unit Difference A B 1 Direct materials $ 560,000 2 Direct labor 105,000 3 Variable MOH 70,000 4 Fixed MOH 455,000 5 Total manufacturing cost for 70,000 units $ 1,190,000 Print Done
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