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Homework: Module 5 Homework Assignment Save Score: 0 of 15 pts 5 of 5 (3 complete) HW Score: 48.99%, 31.84 of 65 pts E8-28A (similar
Homework: Module 5 Homework Assignment Save Score: 0 of 15 pts 5 of 5 (3 complete) HW Score: 48.99%, 31.84 of 65 pts E8-28A (similar to) A Question Help O InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 68,000 units last year: (Click the icon to view the manufacturing costs.) InteliSystems does not yet know how many switches it will need this year, however, another company has offered to sell InteliSystems the switch for $13.50 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 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 Make Buy Data Table - X Unit Unit Difference Variable cost per unit: Direct materials 680,000 Direct labor 136.000 Variable MOH 204,000 442.000 Fixed MOH $ 1,462,000 Total variable cost per unit Total manufacturing cost for 68,000 units Print Done
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