Miyau pearson.com/student/PlayerHomework.aspx?homeworkId=622119794&questionid=5&flushed=false&cid=69017398centerwin yes ACC 241 Uses of Accounting Information II Homework: Chapter 8 Homework (required) Question 5, E8-30A (similar to) Part 3 of 6 TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 68,000 units last year (Click the icon to view the manufacturing costs) Read the requirements TechSystems does not yet TechSystems the switch fo facilities that will be idle car Requirement 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis Complete an incremental analysis to show whether TechSystems should make or buy the switch (Enter a "0" for any zero amounts Round amounts to the nearest cen Tech Systems Incremental Analysis for Outsourcing Decision Make Buy Data table - X ke or buy t make or b A B 1 Direct materials $ 544,000 minus sign or parentheses when the cost t 2 Direct labor 102,000 3 Variable MOH 4 Fixed MOH 136,000 442,000 Diffe 5 Total manufacturing cost for 68,000 units $ 1,224,000 0 $ 0 0 Print Done points Points: 0.5 of 1 Save TechSystems does not yet know how many switches it will need this year, however, another company has offered to sell TechSystems the switch for $9.50 per unit. If TechSystems 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. -X $ B 544,000 102,000 136,000 442,000 minus sign or parentheses when the cost to buy exceeds the cost to make) Requirement 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis Complete an incremental analysis to show whether TechSystems should make or buy the switch. (Enter a "0" for any zero amounts Round amounts tar Tech Systems Incremental Analysis for Outsourcing Decision Make Unit Buy Unit Difference Variable cost per unit Direct materials $ 8.00 $ 0.00 $ 8.00 Direct labor 1.50 0.00 1.50 Variable overhead 2.00 0.00 2.00 0.00 9.50 (9.50) Purchase price from outsider $ 11.50 $ 9.50 $ 2.00 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 me that Techsystems can avoid $100,000 of and costs a year by ourong products alon, beca song Feches 73.000 syrer han 000 wh company do no Clean decays assurong band casts can be avoided) Outsourcing Decision www Dwy 11.50 B 930 447000 Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production and the number of units Tech Systems Outsourcing Decision Variable cost per unit Make Buy switches switches 11.50 $ 9.50 Units needed Total variable costs 442,000 Fixed costs Total relevant costs Help me solve this Video Get more help Read the requirements $ Total variable cost per unit 11.50 $ 9.50 S 2.00 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 TechSystems can avoid $100,000 of foxed costs a year by outsourcing production. In addition, because sales are increasing, TechSystems 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 Tech Systems Outsourcing Decision Make switches Buy switches Variable cost per unit $ 11.50 $ 9.50 Units needed Total vatiable costs 442,000 Fixed costs 2.00 Califot be used for any other purpose, yet none of the fand costs a mode Which from the cubide suppler the manufactu is greater than the vanable cost per unit to buy the switch ar by outsourcing production. In addition, because sales are increasing, TechSystems needs 73,000 switches a year rather than 60.000 switches. What should the Surcing production and the number of units needed have increased