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InteliSystems manufactures an optical switch that it uses in its final product. (Click the icon to view the outsourcing decision analysis.) InteliSystems incurred the following
InteliSystems manufactures an optical switch that it uses in its final product. (Click the icon to view the outsourcing decision analysis.) InteliSystems incurred the following manufacturing costs when it produced 68,000 units last year: InteliSystems needs 78,000 optical switches next year (assume same (Click the icon to view the manufacturing costs.) relevant range). By outsourcing them, InteliSystems can use its idle Another company has offered to sell InteliSystems the switch for $12.00 per unit. facilities to manufacture another product that will contribute $220,000 to If InteliSystems buys the switch from the outside supplier, none of the fixed costs operating income, but none of the fixed costs will be avoidable. Should are avoidable. The company prepared an outsourcing decision analysis to show InteliSystems make or buy the switches? Show your analysis. the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) ata table
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