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HW 16 - Chapter 8 Question 9, E8-31A (simil... Part 1 of 2 HW Score: 87.78%, 8.78 of 10 points Points: 0 of 1 Save an optical switch that uses in its final product. FiberSystems incurred the following produced 73,000 units last year: the manufacturing costs) med to sell Fiber Systems the switch for $16.50 per unit. If Fiber Systems buys the switch from of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to making the wwiiches versus the cost per unit of buying (outsourcing) the switches Click the icon to view the outsourcing decision analysis) Fiber Systems needs 84,000 optical switches next year (assume samne relevant range). By cutsourcing them, FiberSystems can use its ide facilities to manufacture another product that will contribute $140,000 to operating income, but none of the fixed costs wil be avoidable. Should Fiber Systems make or buy the switches? Show you analysis Data Table Data Table B 5 730.000 Difference 1 Direct materials 2 Direct labor 3 Variable MOH 4 Fixed MOH Total manufacturing cost for 73.000 units 73,000 219.000 Fiber Systems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Variable cost per unit Direct materiale S 10.00 $ 0.00 $ Direct labor 1.00 0.00 Variatie overhead 3.00 0.00 Purchase price from outside 0.00 16.50 Variable cost per unit 14.00 5 16.505 16.00 438.000 1,460,000 100 3.00 118.50 12.501 Print Done Print Done Clear All Check Answer = Homework: HW #6 - Chapter 8 Question 9, Part Fiber Systems manufactures an optical switch that it uses in its final product. FiberSystems incurred the following manufacturing costs when it produced 73,000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell Fiber Systems the switch for $16.50 per unit. If Fiber Systems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) Fiber Systems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Total variable cost of obtaining the optical switches Expected profit contribution from the other product Expected sales price of the other product Fixed unit cost of obtaining the optical switches Variable unit cost of obtaining the optical switches