Question
Tech Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit (Click the
Tech Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit (Click the icon to view the costs) (Click the icon to view additional information) Prepare an outsourcing analysis to determine whether Tech Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceed switches in-house.) Variable costs Direct materials Direct labor Variable overhead i Purchase price from outsider Total differential cost per unit Make Outsource optical switch optical switch Difference (Make-Outsource)
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