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RootSystems manufactures an optical switch that it uses in its final product. RootSystems incurred the following manufacturing costs when it produced 74,000 units last
RootSystems manufactures an optical switch that it uses in its final product. RootSystems incurred the following manufacturing costs when it produced 74,000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell RootSystems the switch for $15.00 per unit. If RootSystems buys the switch from outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to sl the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) RootSystems Best Use of Facilities Analysis Make Buy and Use Facilities for Other Product Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches. x x Da Va
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