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TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the TechSystems does not yet know how many switches it will
TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the TechSystems does not yet know how many switches it will need this year; however, another company following manufacturing costs when it produced 69,000 units last year: has offered to sell TechSystems the switch for $11.00 per unit. If TechSystems buys the switch from the Click the icon to view the manufacturing costs.) outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Read the requirements Using the basic formula you determined above, solve for the outsourcing cost at which TechSystems would be indifferent between outsourcing and making the switches. (Enter your per unit calculation to the nearest cent.) TechSystems would be indifferent between outsourcing and making the switches if the outsourcing cost was $ per switch. Therefore, Systems will only be willing to outsource if the outsourcing cost is less than per switch
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