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please I need help I will rate thumbs up!! Tech Systems manufactures an optical switch that it uses in its final product. TechSystems incurred the
please I need help I will rate thumbs up!!
Tech Systems 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 Requirement 1. Given the same cost structure, should Tech Systems 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 Tech Systems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit A (similar to) 6 HW Score: 81.67%, 8.17 of 10 points Points: 0.17 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 Tech 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 unts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make ) Data table - - X X sign or pa 1 Direct materials $ CA 544,000 102,000 2 Direct labor 3 Variable MOH 136,000 442,000 4 Fixed MOH $ 1,224,000 5 Total manufacturing cost for 68,000 units Print Done OR eo Requirements X nak SI 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis. 2. Now, assume that TechSystems can avoid $100,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, TechSystems needs 73,000 switches a year rather than 68,000 switches. What should the company do now? 3. Given the last scenario, what is the most TechSystems would be willing to pay to outsource the switches? Print Done estSystems manufactures an optical switch that it uses in its final product. BestSystems incurred the following manufacturing osts when it produced 66,000 units last year Click the icon to view the manufacturing costs) mead the requirements Unit Lequirement 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 (Enter a "O" for any zero amour BestSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Difference Wariable cost per unit Direct materials Direct labor Vanable overhead Purchase price from outsider Total variable cost per unit Decision Mer because the variable cost per unit to make the switch is than the variable cost per unit Decision because the variable cost per unit to make the switch is than the variable cost per unit to buy the Requirement 2. Now, assume that BestSystems can avoid $95,000 of tixed costs a year by outsourcing production. In addition, because sales company do now? Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production and tho number of units needed ha- BestSystems Outsourcing Decision Make Buy switches switches Vanable cost per unit Units needed Total variable costs Fixed costs Total relevant costs Help me solve this Video Get more help Stems does not yet know how many switches it will need this year however another company has BestSystems tho switch for $13 50 per unit if BestSystems buys the switch from the outside supplier, then facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs aro avoidable riable cost per unit to buy the switch 73.000 on. In addition because sales are increasing, BestSystems need switches a year rather than switches What should 68,000 The number of units needed have increased utacturing costs) is does not yet kno BestSystems the swich for $17 facilities that will be ido cand Read the requirements Variable cost per unit Units needed Total variable costs Fixed costs Total relevant costs Decision hocause the total relevant costs to make the switches are than the total rolevant costs to buy the switches Requirement 3. Given the last scenario what is the most BestSystems would be willing to puy to outsource the switches? Bogin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit Costit making switches Contfoutsourcing Switch Variable costs. Fixed costs Variable costs Fixed cost Using the basic formula you determined above, solve for the outsourcing cost at which Bastsysdors would be indicant between outsourcing and making the swiches. En BestSystems would be indifferent between outsourcing and making the switches if the outsourcing cost was per switch Thoroforo, Systoms wil only be willing to outsource if the outsourcing costs or switch Help me solve this Video Get more help Step by Step Solution
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