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Requirement 2. Now, assume that BestSystems can avoid $100,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, BestSystems needs
Requirement 2. Now, assume that BestSystems can avoid $100,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, BestSystems needs 74,000 switches a year rather than 69,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production and the number of units needed have increased. BestSystems Outsourcing Decision i Data Table Make Buy switches switches Direct materials Direct labor Variable MOH 690,000 69,000 138,000 448,500 Fixed MOH $ 1,345,500 Total manufacturing cost for 69,000 units Total relevant costs Print [ Done Print Done Choose from any list or enter any number in the input fields and then click Check
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