Score: 0 of 1 pt 9 of 10 (9 completo) HW Score: 73.14%, 7.31 of 10 pts E8-29A (similar to) Question Help RoatSystems manufactures an optical switch that it uses in its final product. RoatSystems incurred the following manufacturing costs when it produced 67,000 units last year: Click the icon to view the manufacturing costs.) Another company has offered to sell Rap Systems the switch for $8.50 per unit. If RootSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (autsourcing) the switches Click the icon to view the outsourcng decision analysis.) RoatSystems needs 43,000 optical switches next year (assume same relevant range). By cutsourcing them, RootSystems can use its idle facilities to manufacture another product that will contribute $150,000 to operating income, but none of the fixed casts will be avcridabile. Should Rap Systems make or buy the switches? Shaw your analysis Complete the Best Use of Facilities Analysis. (Enter a '0" for any zero amounts.) i Data Table RootSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Difference RootSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Variable cost per unit: Direct materials $ 9.00 S 0.00 $ Direct labor 1.00 0.00 Variable overhead 2.00 0.00 Purchase price from lider 0.00 8.50 $ 12.0D S 8.50 $ Variable cost per unit Tolal variable cost of obtaining the aplical switches 9.00 1.00 Expected net cost of obtaining the optical switches 2.00 (8.50) i Data Table 3.50 Print Done $ Direct materials Direct labor Variable MOH 803,000 67,000 134,000 402.000 Fixed MOH S Total manufacturing cost for 67,000 units 1,206,000 Choose from any list or enter any number in the input fields and then click Check Print Donc ? E8-29A (similar to) Question Help (Click the icon to view the outsourcing decision analysis.) RootSystems manufactures an optical switch that it uses in its final product. RootSystems incurred the following manufacturing costs when it produced 67,000 units last year: 5 (Click the icon to view the manufacturing costs.) Another company has offered to sell RootSystems the switch for $8.50 per unit. If RootSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. RootSystems needs 83,000 optical switches next year (assume same relevant range). By outsourcing them, RootSystems can use its idle facilities to manufacture another product that will contribute $150,000 to operating income, but none of the fixed costs will be avoidable. Should RootSystems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) RootSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches (Click the icon to view the outsourcing decision analysis.) RootSystems manufactures an optical switch that it uses in its final product. RootSystems incurred the following manufacturing costs when it produced 67,000 units last year: 3 (Click the icon to view the manufacturing costs.) Another company has offered to sell RootSystems the switch for $8.50 per unit. If RootSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. RootSystems needs 83,000 optical switches next year (assume same relevant range). By outsourcing them, RootSystems can use its idle facilities to manufacture another product that will contribute $150,000 to operating income, but none of the fixed costs will be avoidable. Should RootSystems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) RootSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Expected profit contribution from the other product Expected sales price of the other product Fixed unit cost of obtaining the optical switches Variable unit cost of obtaining the optical switches
