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Image Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Image Systems the switch for $
Image Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Image Systems the switch for $ per unit. None of Image's fixed costs are avoidable.
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Image Systems needs optical switches. By outsourcing them, Image Systems can use its idle facilities to manufacture another product that will contribute $ to operating income.
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Requirement Identify the expected net costs that Image Systems will incur to acquire switches finder three alternative plans.
tableOutsource switchesFacilities,Make new,Switch costs,Make,Idle,product
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