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RootSyslems manufactures an optical switrh that it uses in its nal orodud, RoolSyslems incurred the following RootSyems does not yet know how many switches it will need this year; howeven another company has offered manufacturing costs when it produced 66,000 units last year: a (Click the icon to View the manufacturing costs) Read the moiremenls. Decision' Y because the variable cost per unit to make the switch is Requirement 2. Now, assume that RootSystems can avoid $106,000 of xed cums a year m switches. What should the company do now? Complete an outsourcing decision analysis assuming xed costs can be avoided by outsourt RootSystems Outsourcing Decisio n Make Buy switch es switches Choose from any list or enter any number in the input elds and then continue to the next question. E Type here to search Q to sell RoolSystems the switch for $16.50 per unit. tfRoolSystems buys the switch from the outside supplier. the manufacturing tacilities that will be idle cannot be used for any other purpose yet none oi the xed costs are avoidable. : than the variable cost per unit to buy the switch duction In addition, because sales are increasing' RootSysterns needs 71,000 switches a year ratherthan 66,000 greater less \"Id the number of units needed have incre ased, 1 RootSystems manufactures an optical switch that it uses in its nal produd. RootSystems incurred the following RootSystems does not yet know how many switches it will need this year; however. another company has offered manufacturing cosls when il produced 66,000 units last year: to sell RoolSystems the switch for $16 5|] per unit lfRoolSystems buys the switch from the outside supplier, the a (Click the icon .0 view the manufacturing costs.) manufacturing facilities that will be idle cannot be used for any other purpose. yet none of the xed costs are avoidable. Read the moirements. Outsourcing Decision Make Buy switches switches Total relevant costs Decision V because the total relevant costs to make the thd1es are V than the total relevant costs to buy the switches, Requirement 3. Given the last scenario, what is the mom RootSystems would be willing to pay to outsource the switches? Rania hv Mnntirinn the hnclr fnrmuln Illa} Ia "cud IA atnrmlnn lhn ini'nrnnt nnlamlrr-inn rnel nnr unit Choose from any list or enter any number in the input elds and T.an Continue [0 the next question E Type hereto sear Lia RootSystems manufactures an opticai switch that it uses in its nal product. RootSystems incurred the following RootSystems does not yet know how many switches it will need this year: howeven another company has offered manufacturing costs when it produced 66,000 units iast year: a (Click the icon to View the manu actunng costs.) Read the uirements. i I ll I Total relevant costs Decision. Y because the total relevant costs to make the switcha are to sell RoolSystems the switch for $i5.5l] per unit. lfRoolSystems buys the swilch from the outside supplier, the manufacturing lacilities that will be idle cannot be used for any other purpose yet none of the xed costs are avoidable. V than the total relevant costs to buy the switches. Requirement 3. Given the iast scenario' what is the most RootSystems would be willing to pay to outsource the switches? Begin by identifying the basiclormula that is used to determine the indifferent. outsourcing cost per unit Cost if making switdtes = Cost if outsourcing switches Using the basic formula you determined above, soive for the outsourcing cost at which RootSystems would be RootSystems wouid be indifferent between outsourcing and making the switches if the outsourcing cost was $ inditferent between outsourcing and making the switches. (Enter your per unit caicuialion to the nearest cent.) oer per switch Therefore Systems wiil only be willing to outsource ifthe outsourcing cost is $ switch Choose from any list or enter any number in the input elds and then continue to the next question RootSystems manufactures an optical switch that it uses in its nal produd. RootSystems incurred the following RootSystems does not yet know how many switches it will need this year; however. another company has offered manufacturing costs when it produced 66,000 units last year: to sell RootSystems the switch tor $15 50 per unit lfRootSystems buys the switch tram the outside supplier tl'ie a (Click the icon to View the manufacturing costs.) manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the xed costs are avoidable Read the muire merits, Complete an incremental analysis to show whether RootSystems should make or buy the swildl (Enter a "0" tor any zero amounts Round amounts to the nearesl cent, Use a minus sign or parentheses when the cost to buy A exceeds the cost to ma ice ) RootSystems Incremental Analysis for Outsourcing Decision Make Bu), 0 Data Table Unit Unit Dierence Variable cost per unit: Direct materials 726.000 Direct labor 99.000 Variable MOH 132.000 Fixed MOH 353-00\" 5: 1.3211000 Total manufacturing cost for 66 000 units Total variable cost per unit Choose 'om any list or enter any number in the input elds and then continue to the next question. a 0 Type here to search Q RootSystems manufactures an optical switch that it uses in its final produd. RootSystems incurred the following RootSystems does not yet know how many switches it will need this year; however. another company has offered manufacturing costs when it produced 66,000 units last year: to sell RootSystems the switch for $15.50 per unit lfRootSystems buys the switch trom the outside supplier. the a (Click the icon .0 View the manufacturing costs.) manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the xed costs are avoidable Read the uirements. Decision 1 because the variable cost per unit to make the switch is : than the variable cost per unit to buy the switch Requirem stems can avoid $106,000 of fixed costs a year by outsourcing production. In addition. because sales are increasing. RootSystems needs 71.000 switches a year raiherthan 68.000 switches ' Make the optical switch r7 Complete Buy the optical SWilCi'l assuming xed costs can be avoided by outsourcing production and the number of units needed have increased. RootSystJems Outsourcing Decision Make Buy switches switches Choose from any list or enter any number in the input elds and tnen continue to the next question E 0 Type here to search