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Homework: M 8 Homework Part 1 of 2 Question 8 Score: 0 of 6 points Save B-Graded Root Systems manufactures an optical switch that it

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Homework: M 8 Homework Part 1 of 2 Question 8 Score: 0 of 6 points Save B-Graded Root Systems manufactures an optical switch that it uses in its final product Root Systems needs 81,000 optical switches. By Outsourcing them, Root Another company has offered to soll Root Systems the switch for $24.50 per unit Systems can use its ide facilities to manutacture another product that will None of Root's fixed costs are avoidable contribute $220,000 to operating income Click the icon to view the outsourcing decision) Read the requicements Requirement 1. Identity tho expected not costs that Rool Systems will incur to acquire 81,000 switches under throw alternative plans Outsource switches Facilities Make new Switch costs Idle product Variable costs Direct materials Direct labor Variable manufacturing overhead Purchase cost Expected profit contribution from the other product Make Enter any number in the edit fields and then click Check Answer Clear All Check Answer Help Me Solve This e Text Pages Get More Help To see what to stay next, go to your sty PT . Outsource switches Facilities Idle Make new product Switch costs 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 Enter any number in the edit fields and then click Check Answer Data Table Make Outsource Difference optical switch optical switch (Make-Outsource) Variable costs: $ 9.00 $ 9.00 5.00 5.00 Direct materials Direct labor Variable overhead Purchase price from outsider 8.00 $ 24.50 8.00 (24.50) (2.50) $ 22.00 $ 24.50 $ Differential cost per unit Print Done Requirements 1. Identify the expected net costs that Root Systems will incur to acquire 81,000 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 product. 2. Which plan makes the best use of Root System's facilities? Support your answer. Print Done

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