Requirements 1. Given the same cost structure, should IntelSystems make or buy the switch? Show your analysis 2. Now, assume that IntelilSystems can avold $100,000 of faced costs a year by outsourcing production. In addition, because salios are increasing. InteilSystems needs 79,000 swilches a year rather than 74,000 switches. What should the company do now? 3. Given the last sconario, what is the most inteisystems would be willing to pay to outsource the switches? InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 74,000 units last year: (Click the icon to view the manufacturing costs.) Read the InteliSystems does not yet know how many switches it will need this year; however, another company has offered to sell InteliSystems the switch for $12.00 per unit. If InteliSystems 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. Requirement 1. Given the same cost structure, should inteisystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whother intoliSystems should make or buy the saitch. (Enter a "O* for any zero amounts. Round amcunts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the coat to make.) Requirements 1. Given the same cost structure, should IntelSystems make or buy the switch? Show your analysis 2. Now, assume that IntelilSystems can avold $100,000 of faced costs a year by outsourcing production. In addition, because salios are increasing. InteilSystems needs 79,000 swilches a year rather than 74,000 switches. What should the company do now? 3. Given the last sconario, what is the most inteisystems would be willing to pay to outsource the switches? InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 74,000 units last year: (Click the icon to view the manufacturing costs.) Read the InteliSystems does not yet know how many switches it will need this year; however, another company has offered to sell InteliSystems the switch for $12.00 per unit. If InteliSystems 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. Requirement 1. Given the same cost structure, should inteisystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whother intoliSystems should make or buy the saitch. (Enter a "O* for any zero amounts. Round amcunts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the coat to make.)
