Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

st: 0 21 E8-28A (similar to) 30 Question Help TechSystems manufactures an optical switch that it uses in its final product Tech Systems does not

image text in transcribed
image text in transcribed
image text in transcribed
st: 0 21 E8-28A (similar to) 30 Question Help TechSystems manufactures an optical switch that it uses in its final product Tech Systems does not yet know how many switches it will need this year, st Tech Systems incurred the following manufacturing costs when it produced 70,000 however, another company has offered to sell TechSystems the switch for $15.50 units last year per unit. If TechSystems buys the switch from the outside supplier, the Click the icon to view the manufacturing costs) manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable to) Read the requirements art Requirement 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis Complete an incremental analysis to show whether Tech Systems should make or buy the switch (Enter a "* for any zero amounts. Round amounts to the nearest cent. Use a minus signor parentheses when the cost to buy exceeds the cost to make TechSystems Incremental Analysis for Outsourcing Decision Buy Unit Unit Difference 210-6 Variable cost per unit Ey Poll Make Choose from any list or enter any number in the input fields and then click Check Answer ng costs.) another company has offer per unit. If TechSystems buys the sw manufacturing facilities that will be id none of the fixed costs are avoidable i Data Table X A B 1 Direct materials $ 630,000 2 Direct labor 140,000 3 Variable MOH 70,000 4 Fixed MOH 455,000 5 Total manufacturing cost for 70,000 units $ 1,295,000 Print Done er in the input fields and then click Check Answer. Clear All T: to) Question Help TechSystems manufactures an optical switch that it uses in its final product uesti TechSystems incurred the following manufacturing costs when it produced 70,000 however, another company has offered to sell TechSystems the switch for $1550 TechSystems does not yet know how many switches it wil need this year units last year per unit. If TechSystems buy the switch from the outside supplier, the Click the icon to view the manufacturing costs.) manufacturing facilities that will be ide cannot be used for any other purpose, yet stati none of the fixed costs are avoidable Read the requirements Mars Complete an incremental analysis to show whether TechSystems should make or buy the switch (Enter a o for any zero amounta. Round amounts to the rarust cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make) TechSystems Incremental Analysis for Outsourcing Decision Mako Buy Unit Unit Difference Variable cost per unit: 0-64 Poli Total variable cost per unit

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

Students also viewed these Accounting questions