Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

not sure how to do the rest. thank you!! E8-28A (similar to) GlobalSystems manufactures an optical switch that it uses in its final product Global

not sure how to do the rest. thank you!! image text in transcribed
E8-28A (similar to) GlobalSystems manufactures an optical switch that it uses in its final product Global Systems incurred the following manufacturing costs when it produced 66,000 units last year. (Click the icon to view the manufacturing costs.) Global Systems does not yet know how many switches it will need this year, however, another company has offered to sell Global Systems the switch for $17.00 per unit. If Global Systems 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 ir Requirement 1. Given the same cost structure, should Global Systems make or buy the switch? Show your analysis. 0 Complete an incremental analysis to show whether GlobalSystems should make or buy the switch (Enter a "O" for any zor amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make Global Systems Data Table Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference 726.000 1 Direct materials Variable cost per unit: 99,000 Direct materials 2 Direct labor 11.00 Direct labor 1.50 3 Variable MOH 65,000 Variable overhead 0 4 Fixed MOH 462,000 Purchase price from outsider 6 Total manufacturing cost for 66,000 units $ 1,353,000 Total variable cost per unit Charmant or enter any number in the input fields and then click Check Answe Done Print

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

11th Edition

978-0132568968, 9780132568968

More Books

Students also viewed these Accounting questions