Intel Systems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 67,000 units last year. B (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 $11.50 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 Purchase price from outsider 0.00 11.50 (11.50) $ 14.50 S 11.50 $ 3.00 Total variable cost per unit Decision: Buy the optical switch because the variable cost per unit to make the switch is greater than the variable cost per unit to buy the switch. Requirement 2. Now, assume that InteliSystems can avoid 599,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSystems needs 72.000 switches a year rather than 67,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production and the number of units needed have increased. InteliSystems Outsourcing Decision Make Requirements Buy switches switches Variable cost per unit $ 11.50 14.50 $ 72,000 72,000 Units needed Total variable costs 1,044,000 368,500 828,000 3685001 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis 2. Now, assume that Intel Systems can avoid 599,000 of fixed costs a year by Outsourcing production. In addition, because sales are increasing. Intel Systems needs 72,000 switches a year rather than 67,000 switches. What should the company do now? 3. Given the last scenario, what is the most InteliSystems would be willing to pay to outsource the switches? Fixed costs $ 1,412,500 1196500 Total relevant costs Choose from any list or enter any number in the input fields and then click Check Answer. Print Done ? parts remaining Clear All Check Answer Intel Systems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 67,000 units last year: B (Click the icon to view the manufacturing costs.) Read the requirements. InteliSystems does not yet know how many switches it will need this year; however, another company has offered to sell InteliSystems the switch for $11.50 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. Requirement 1. Given the same cost structure, should Intel Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether InteliSystems should make or buy the switch. (Enter a "O" for any zero amou make.) i Requirements by exceeds the cost to Intel Systems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis 2. Now, assume that Intel Systems can avoid $99.000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Intel Systems needs 72,000 switches a year rather than 67,000 switches. What should the company do now? 3. Given the last scenario, what is the most intellSystems would be willing to pay to outsource the switches? $ 10.00 S 0.00 $ 10.00 Variable cost per unit: Direct materials Direct labor Variable overhead 2.50 0.00 2.50 2.00 0.00 2.00 0.00 11.50 Purchase price from outsider Print (11.50) Done $ 14.50 S 11.50 $ 3.00 Total variable cost per unit Decision: Buy the optical switch because the variable cost per unit to make the switch is greater than the variable cost per unit to buy the switch. Requirement 2. Now, assume that InteliSystems can avoid $99,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSysterns needs 72,000 switches a year rather than 67,000 switches. What should the company do now? Choose from any list or enter any number in the input fields and then click Check Answer. ? 3 3 parts remaining Clear All Check Answer InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 67,000 units last year. E: (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 $11.50 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 Intel Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether Intel Systems should make or buy the switch. (Enter a "' for any zero amounts. Round an make.) Data Table y exceeds the cost to A B InteliSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit $ 1 Direct materials 2 Direct labor Difference 670,000 167,500 134,000 Variable cost per unit: Direct materials 3 Variable MOH 4 Fixed MOH $ 10.00 S 0.00 $ 10.00 368,500 2.50 0.00 2.50 $ 5 Total manufacturing cost for 67,000 units 1,340,000 Direct labor Variable overhead 2.00 0.00 2.00 Purchase price from outsider 0.00 11.50 (11.50) Print Done $ 14.50 S 11.50 $ 3.00 Total variable cost per unit Decision: Buy the optical switch because the variable cost per unit to make the switch is greater than the variable cost per unit to buy the switch. Requirement 2. Now, assume that InteliSystems can avoid $99,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSystems needs 72,000 switches a year rather than 67,000 switches. What should the company do now? Choose from any list or enter any number in the input fields and then click Check Answer. ? 3 3 parts remaining Clear All Check Answer Intel Systems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 67,000 units last year. B (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 $11.50 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 Purchase price from outsider 0.00 11.50 (11.50) $ 14.50 S 11.50 $ 3.00 Total variable cost per unit Decision: Buy the optical switch because the variable cost per unit to make the switch is greater than the variable cost per unit to buy the switch. Requirement 2. Now, assume that InteliSystems can avoid 599,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSystems needs 72.000 switches a year rather than 67,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production and the number of units needed have increased. InteliSystems Outsourcing Decision Make Requirements Buy switches switches Variable cost per unit $ 11.50 14.50 $ 72,000 72,000 Units needed Total variable costs 1,044,000 368,500 828,000 3685001 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis 2. Now, assume that Intel Systems can avoid 599,000 of fixed costs a year by Outsourcing production. In addition, because sales are increasing. Intel Systems needs 72,000 switches a year rather than 67,000 switches. What should the company do now? 3. Given the last scenario, what is the most InteliSystems would be willing to pay to outsource the switches? Fixed costs $ 1,412,500 1196500 Total relevant costs Choose from any list or enter any number in the input fields and then click Check Answer. Print Done ? parts remaining Clear All Check Answer Intel Systems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 67,000 units last year: B (Click the icon to view the manufacturing costs.) Read the requirements. InteliSystems does not yet know how many switches it will need this year; however, another company has offered to sell InteliSystems the switch for $11.50 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. Requirement 1. Given the same cost structure, should Intel Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether InteliSystems should make or buy the switch. (Enter a "O" for any zero amou make.) i Requirements by exceeds the cost to Intel Systems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis 2. Now, assume that Intel Systems can avoid $99.000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Intel Systems needs 72,000 switches a year rather than 67,000 switches. What should the company do now? 3. Given the last scenario, what is the most intellSystems would be willing to pay to outsource the switches? $ 10.00 S 0.00 $ 10.00 Variable cost per unit: Direct materials Direct labor Variable overhead 2.50 0.00 2.50 2.00 0.00 2.00 0.00 11.50 Purchase price from outsider Print (11.50) Done $ 14.50 S 11.50 $ 3.00 Total variable cost per unit Decision: Buy the optical switch because the variable cost per unit to make the switch is greater than the variable cost per unit to buy the switch. Requirement 2. Now, assume that InteliSystems can avoid $99,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSysterns needs 72,000 switches a year rather than 67,000 switches. What should the company do now? Choose from any list or enter any number in the input fields and then click Check Answer. ? 3 3 parts remaining Clear All Check Answer InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 67,000 units last year. E: (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 $11.50 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 Intel Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether Intel Systems should make or buy the switch. (Enter a "' for any zero amounts. Round an make.) Data Table y exceeds the cost to A B InteliSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit $ 1 Direct materials 2 Direct labor Difference 670,000 167,500 134,000 Variable cost per unit: Direct materials 3 Variable MOH 4 Fixed MOH $ 10.00 S 0.00 $ 10.00 368,500 2.50 0.00 2.50 $ 5 Total manufacturing cost for 67,000 units 1,340,000 Direct labor Variable overhead 2.00 0.00 2.00 Purchase price from outsider 0.00 11.50 (11.50) Print Done $ 14.50 S 11.50 $ 3.00 Total variable cost per unit Decision: Buy the optical switch because the variable cost per unit to make the switch is greater than the variable cost per unit to buy the switch. Requirement 2. Now, assume that InteliSystems can avoid $99,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSystems needs 72,000 switches a year rather than 67,000 switches. What should the company do now? Choose from any list or enter any number in the input fields and then click Check Answer. ? 3 3 parts remaining Clear All Check