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= Homework: Homework Chapter Eight Question 7, E8-30A (similar to) Part 1 of 6 HW Score: 9.97%, 1.99 of 20 points Points: 0 of 2 Save BestSystems manufactures an optical switch that it uses in its final product. BestSystems incurred the following manufacturing costs when it produced 70,000 units last year: (Click the icon to view the manufacturing costs.) BestSystems does not yet know how many switches it will need this year, however, another company has offered to sell BestSysteris the switch for $17.50 per unit. If BestSystems 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 BestSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether BestSystems should make or buy the switch toronto anu zao amante Bound amount to the nearest cant les a minus sign or parentheses when the cost to buy exceeds the cost to make.) - - X BestSystems Data table Incremental Analysis for Outsourcing Decision Make Buy A B Unit Unit Difference 1 Direct materials $ 700,000 Variable cost per unit: 2 Direct labor 140,000 3 Variable MOH 210,000 4 Fixed MOH 490,000 $ 5 Total manufacturing cost for 70,000 units 1,540,000 Total variable cost per unit - X Requirements Print 1. Given the same cost structure, should BestSystems make or buy the switch? Show your analysis. 2. Now, assume that BestSystems can avoid $100,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing. BestSystems needs 75,000 switches a year rather than 70.000 switches. What should the company do now? 3. Given the last scenario, what is the most BestSystems would be willing to pay to outsource the switches? Help me solve this Video Get more help Beste maniere option that instalat. Bestyle noured the following marutatumg costs when it produced 70.000 units last year lick the conto the maching con Beste cose not yet know how many witches we need this year: however, another company has offered to set BestSystems with $17.50 per buys the witch from the tide supplier the manuscribes that will be file cannot be used for the purpose. yet none of the fired costs are wote Read the rent Requirement 1. Owen De care constructure should Bottom make or buy witch? Show your slysis Conciato un incrementa unayan sa show where butystore should make or buy the site. (Enter a fer for any rere amounts . Round wounds to wearest cent dhe u miros sign oc parentheses when the cost o bayihe court to BestSystems Incremental Analysis for Outsourcing Decision Mail Buy Derence V count Requirements Totate content Data table 1. concurso y make or buy the w Show your 2. Now Some cavoid 5100,000 of the costs yearby Outsourcing production is because we are on B78.000 wiches ayhan 70,000 waliches What would be company do now? 1. Given the scene, what is the most would be willing to pay toote the switches? 1 Direct materiale 2 Direct labor V MOH 4 MOH Total manufacturing cost for 70.000 unite 100.000 140.000 250.000 DO DOO Help me solve this Video Get more help IS 1540000
