Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

solve all the 3 parts according to the data given, ignore the working done in the rest and do it according to this question RootSystems

solve all the 3 parts according to the data given, ignore the working done in the rest and do it according to this question image text in transcribed
image text in transcribed
image text in transcribed
RootSystems manufactures an optical switch that in uses in its final product. Roolsystems incurred the following manufacturing costs when it produced 70,000 units last year (Click the icon to view the manufacturing costs.) RootSyatems does nok yet know how many satches it wi need tha yar, towever, Rooksyshems buys the switch from the cutside supplior, the man facturng foclles hal will be ide cannot be used for any other puppose, yet rone of the frud costas are awoidable. Read the requirements. Requirement 1. Given the same cost structure, should RootSystems make or buy the swith? Show your analysis Complete an incremental analysis to show whether RootSystems should make or buy the swich. (Emer a "O" for any zero amounta. Round anounts to the nearest cerc Use a mins sipo of parentheses when the cost to buy exceeds the cost to make.) Data table Complete an outsourcing decision analysis assuming foxed costs can be avoided by cutsourcing production and the number of units needed hwe increased Decision: because the total relevant costs to make the swiches are than the boes relevant costs so buy the swiches Requirement 3. Given the last scenario, what is the most GlobalSystems would be wiling to pay to outsouree the suitohes? Begin by identifying the basic formula that is used to determine the indifferent cutsoureing cost por unit. Decision: because the total relovant costs to make the switches are than the botal relevant costs to buy the switches Requirement 3. Given the last scenario, what is the most GlobalSystems would be willing to pay to outsource the switches? Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit. Using the basic formula you determined above, solve for the outscurcing cost at which GlobalSystems would be indifferent between oussourcing and making the smithes. \{Entar your per une calculation to the nearest cent.) GlobalSystems would be indifferent between outsourcing and making the ssittehas if the ouscourcina cost was per switch. Therefore, Systems will only be willing to outsource if the outsourcing cost is RootSystems manufactures an optical switch that in uses in its final product. Roolsystems incurred the following manufacturing costs when it produced 70,000 units last year (Click the icon to view the manufacturing costs.) RootSyatems does nok yet know how many satches it wi need tha yar, towever, Rooksyshems buys the switch from the cutside supplior, the man facturng foclles hal will be ide cannot be used for any other puppose, yet rone of the frud costas are awoidable. Read the requirements. Requirement 1. Given the same cost structure, should RootSystems make or buy the swith? Show your analysis Complete an incremental analysis to show whether RootSystems should make or buy the swich. (Emer a "O" for any zero amounta. Round anounts to the nearest cerc Use a mins sipo of parentheses when the cost to buy exceeds the cost to make.) Data table Complete an outsourcing decision analysis assuming foxed costs can be avoided by cutsourcing production and the number of units needed hwe increased Decision: because the total relevant costs to make the swiches are than the boes relevant costs so buy the swiches Requirement 3. Given the last scenario, what is the most GlobalSystems would be wiling to pay to outsouree the suitohes? Begin by identifying the basic formula that is used to determine the indifferent cutsoureing cost por unit. Decision: because the total relovant costs to make the switches are than the botal relevant costs to buy the switches Requirement 3. Given the last scenario, what is the most GlobalSystems would be willing to pay to outsource the switches? Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit. Using the basic formula you determined above, solve for the outscurcing cost at which GlobalSystems would be indifferent between oussourcing and making the smithes. \{Entar your per une calculation to the nearest cent.) GlobalSystems would be indifferent between outsourcing and making the ssittehas if the ouscourcina cost was per switch. Therefore, Systems will only be willing to outsource if the outsourcing cost is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Brand Management Audit

Authors: Mr Don Knight

1st Edition

0273649345, 978-0273649342

More Books

Students also viewed these Accounting questions

Question

1. Describe the power of nonverbal communication

Answered: 1 week ago