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Please provide help with all three requirements for this question BeslSysteins manufactures an oplical swilon that it wees in ile final product. Bes.Syslerne incurred the
Please provide help with all three requirements for this question
BeslSysteins manufactures an oplical swilon that it wees in ile final product. Bes.Syslerne incurred the following manufacluring coele when i produced 69,000 units last year: (Click the icon to view the manufacturing coets.) BesISyelerne does not yet know how many switchee it will need this year, however, another company has offered lo sell Bes/Syslerne the switch for $8.50 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 fixar costs are available, Read the requirements Requirement 1. Over the same cost structure, should BestSystems make or buy the switch? Show your aralysis Complean an incruenta analysis to show with BestSystems should make or buy the switch. (Enter a "ly for any zero amounts. Round amounts to the nearest cont. Use a minus sign ar garntheses when the cast to buy exceeds the cost to makn.) BestSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit - X IN Data table III I Requirements IN II | S 521000 Total variable cost per unit Direct materials Direct labor Variable MOH 138 000 448500 1. Given the same cost structure should Eastsystems make or buy the switch? Show your analysis 2. Now, sesume that BestSystems can avoid $102,000 of fixed coets a year by outsourcing production. In addition, because sales are increasing BestSystems needs 74.000 switches a year rather than 69,000 switches. What stauld the company na naw? 3. Given the last soararo, what is the most Bestsystems woud be willing to pay to outsource the switches? Fixed MOH S Total manufacturing cost for 69,000 units 1,276,500Step by Step Solution
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