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Laser Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Laser Systems the switch for $22.50
Laser Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Laser Systems the switch for $22.50 per unit. None of Laser's fixed costs are avoidable. (Click the icon to view the outsourcing decision.) Laser Systems needs 80,000 optical switches. By outsourcing them, Laser Systems can use its idle facilities to manufacture another product that will contribute $221,000 to operating income. Data table Requirement 1. Identify the expected net costs that Laser Systems will incur to acquire 80,000 switches under three alternative plans. Laser Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Laser Systems the switch for $22.50 per unit. None of Laser's fixed costs are avoidable. (Click the icon to view the outsourcing decision.) Laser Systems needs 80,000 optical switches. By outsourcing them, Laser Systems can use its idle facilities to manufacture another product that will contribute $221,000 to operating income. Data table Requirement 1. Identify the expected net costs that Laser Systems will incur to acquire 80,000 switches under three alternative plans
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