manufactures an optical switch that it uses in its final product.
GlobalSystemsGlobalSystems
incurred the following manufacturing costs when it produced
68 comma 00068,000
units last year:
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(Click the icon to view the manufacturing costs.)
Read the requirements
Homework: Chapter 08 Graded Homework Save 4 of 5 (0 complete) HW Score: 0%, 0 of 30 pts Score: 0 of 6 pts E8-28A (similar to) Question Help GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 68,000 units last year: (Click the icon to view the manufacturing costs.) GlobalSystems does not yet know how many switches it will need this year; however, another company has offered to sell GlobalSystems the switch for $13.00 per unit. If GlobalSystems 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 GlobalSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether GlobalSystems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) GlobalSystems Incremental Analysis for Outsourcing Decision Make Buy Unit A Requirements - X Unit Difference Variable cost per unit: 1. Given the same cost structure, should GlobalSystems make or buy the switch? Show your analysis. 2. Now, assume that GlobalSystems can avoid $97,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, GlobalSystems needs 73,000 switches a year rather than 68,000 switches. What should the company do now? 3. Given the last scenario, what is the most GlobalSystems would be willing to pay to outsource the switches? Total variable cost per unit Print Done Choose from any list or enter any number in the input fields and then click Check Answer. 5 parts remaining Clear All Check Answer Save Homework: Chapter 08 Graded Homework Score: 0 of 6 pts E8-28A (similar to) 4 of 5 (0 complete) HW Score: 0%, 0 of 30 pts Question Help GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 68,000 units last year: (Click the icon to view the manufacturing costs.) GlobalSystems does not yet know how many switches it will need this year; however, another company has offered to sell GlobalSystems the switch for $13.00 per unit. If GlobalSystems 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 GlobalSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether GlobalSystems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) i Requirements - X GlobalSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit A Data Table - X Difference Variable cost per unit: 1. Given the same cost structure, should GlobalSystems make or buy the switch? Show your analysis. 2. Now, assume that GlobalSystems can avoid $97,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing. GlobalSystems needs 73,000 switches a year rather than 68,000 switches. What should the company do now? 3. Given the last scenario, what is the most GlobalSystems would be willing to pay to outsource the switches? Direct materials Direct labor Variable MOH 544,000 102,000 136,000 442,000 Fixed MOH Total manufacturing cost for 68,000 units $ 1,224,000 Total variable cost per unit Print Done Print Done Choose from any list or enter any number in the innut fields and then click Check
