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Lalo sytm manufactures an optical switch that it uses in sinal product. The unch as the following dung coul perint (Click the icon to view
Lalo sytm manufactures an optical switch that it uses in sinal product. The unch as the following dung coul perint (Click the icon to view the costs) Click the icon to view itonal info) Prepare an outsourcing analysis to determine whether Laser Systems should make or buy the switch for the commissione who horor cost of making the witches in-house) Make optical switch Outsource optical switch Difference (Make Outsource) Variable costs Direct materials Direct labor Variable overhead Purchase price from outsider Total differential cost per unit X 10 Data table Direct materials $ 6.00 Direct labor 2.00 Variable overhead 4.00 8.00 Fixed overhead $ 20.00 Manufacturing product cost Print Done More info Another company has offered to sell Laser Systems the switch for $14.00 per unit. If Laser 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
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