Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Rool Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: B Click the
Rool Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: B Click the icon to view the costs.) (Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Root Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the switches in-house.) Make optical switch Outsource optical switch Difference (MakeOutsource) i Data Table - X Variable costs Direct materials Direct labor Variable overhead Direct materials Direct labor Variable overhead Fored overhead 09 Purchase price from outsider Total differential cost per unit 20.50 Manufacturing product cost Decision: Print Done i More Info - X Another company has offered to sel Root Systems the switch for $16.50 per unit. If Root Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are evoldable. Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started