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Image Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon
Image Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon to view the costs.) Al Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Image Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the switches in-house.) Make Outsource Difference optical switch optical switch (Make-Outsource) Variable costs: Direct materials Direct labor Variable overhead Purchase price from outsider Total differential cost per unit Decision: Question Help product. The switch has the following manufacturing costs per unit: - X Data Table - to v - X More Info Is si Jtch $ 9.00 le Direct materials Direct labor Variable overhead 2.50 ch Another company has offered to sell Image Systems the switch for $18.50 per unit. If Image Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. 4.00 8.00 Fixed overhead $ 23.50 Manufacturing product cost Print Done Print Done
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