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Save omework: Chapter 08 Graded Homework core: 5.57 of 6 pts 4 of 5 (5 complete) E8-28A (similar to) HW Score: 94.97%, 28.49 of 30 pts Question Help GlobalSystems manufactures an optical switch that it uses in its final product. Global Systems incurred the following manufacturing costs when it produced 68.000 units last year: 318 (Click the icon to view the manufacturing costs.) GlobalSystems does not yet know how many ruches it will need this year, however, another company has offered to sel Globo Systems thatch for $16.00 per unit. If Global Systems buys the switch from the outside suppler, the manufacturing facices that wil belde cannot be used for any other purpose, yet none of the feed costs are avoidable. Read the requirements Variable cost per unit Units needed Total variable costs switches switches 12.50 $ 16.00 73.000 73.000 912.500 1.168.000 408.000 303,000 $ 1320,500 5 1,471000 Fixed costs Total relevant costs Decision Make the optical switch because the total relevant costs to make the switches are than the total relevant costs to buy the swiches Requirement 3. Given the last scenario, what is the most Global Systems would be willing to pay to outsource the switches? Begin by identifying the basic formula that is used to determine the indiferent outsourcing cost per unit Cost making switches Cost outsourcing sites Variable costs + Fixed costs Variable costs + Food Cou Using the basic formula you determined above, solve for the outsourcing cost of which obytoms would be inderen en oraing and making the rest che e r your pers on to the Global Systems would be indifferent between outsourcing and making the switches the outsourcing cost was per switch. Therefore. Systems will only be willing to outsource in the outsourcing costs Check Answer cho Answer Clear All 2020 Choose from any list or enter any number in the input fields and then All parts showing 60,000 units last yedi. osts.) Oncicu SC Groudloystems Switch 0110.per unit. I GIOD outside supplier, the manufacturing facilities that will be idle cannot of the fixed costs are avoidable. es switches 12.50 $ 16.00 3,000 i Requirements 2,500 8,000 20,500 $ 1. Given the same cost structure, should GlobalSystems make or buy the switch? Show your analysis. 2. Now, assume that GlobalSystems can avoid $105,000 of fixed costs a year by the total relevant outsourcing production. In addition, because sales are increasing. GlobalSystems needs 73,000 switches a year rather than 68,000 switches. is the most Glob What should the company do now? ased to determine 3. Given the last scenario, what is the most GlobalSystems would be willing to pay to outsource the switches? Print Done the switches. (Enter yo we, solve for the ou outsourcing and making the switches if the outsourcing cost was $ per switch willing to outsource if the outsourcing cost is in the input fields and then click Check Answer. Clear All nl. Cildpler 18 Graded Homework Score: 5.57 of 6 pts 4015 (5 complete %E8-28A (similar to) Globasan HW Score: 9497% 28.49 of 30 h un product o s pourred the ofered to ot h er by the whom the 15.00 1.168.000 170 Coming suiches All parts showing Check Ar 4 of 5 (5 complete) Question Help -5.57 of 6 pts r omhe ee E8-28A (similar to) pu Global Systems does not yet know how many whes dh e offered to locate the arch for $16.00 per un obres bus e de color the manufacturing facilities at will be ide cannot be used for any of the feed costs are date Systems manufactures an optical such that is a product Groblems incurred the mandango when it cod 68 000 units last year the icon to view the manufacturing ) Vente conserunt Units needed Total arabeous T3.000 73.000 912.500 .00 400.000 3120 500 517100 Fred out s as the total relevant costo toy the winches com e there? Decision Make the prical swich because the would be Requirements. Glue the last scenario was the most Costosouding watches Variable coats Fired coats the The Systems will only be willing to Check any number in the routes and then Choose from any store All parts showing