Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all 3 parts CoolSystems manufactures an optical switch that it uses in its final product CoolSystems incurred the following manufacturing costs when it

please answer all 3 parts
image text in transcribed
image text in transcribed
CoolSystems manufactures an optical switch that it uses in its final product CoolSystems incurred the following manufacturing costs when it produced 67,000 units last year. (Click the icon to view the manufacturing costs.) Read the requirements Requirement 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether CoolSystems should make of buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nea Data table Requirements 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. 2. Now, assume that CoolSystems can avoid $95,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing. CoolSystems needs 72,000 switches a year rather than 67,000 switches What should the company do now? 3. Given the last scenario, what is the most CoolSystems would be willing to pay to outsource the switches? ng manulacturing costs CoolSystems does not yet know how many switches it will need this year, however, another company has offered to sell : CoolSystems the switch for $11.00 per unit. If CoolSystems buys the 5wi itch 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. (a) astysis : 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) Data table

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_2

Step: 3

blur-text-image_3

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

Wiley CIA Essentials Of Internal Auditing Part 1 Exam Review 2023

Authors: S. Rao Vallabhaneni

1st Edition

1119987148, 978-1119987147

More Books

Students also viewed these Accounting questions

Question

What are some of the possible scenes from our future?

Answered: 1 week ago