Answered step by step
Verified Expert Solution
Question
1 Approved Answer
TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following (Click the icon to view the outsourcing decision analysis.)
TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following (Click the icon to view the outsourcing decision analysis.) manufacturing costs when it produced 73,000 units last year. (Click the icon to view the manufacturing costs.) TechSystems needs 79,000 optical switches next year (assume same relevant range). By outsourcing them, Another company has offered to sell TechSystems the switch for $17.50 per unit. If TechSystems buys the switch TechSystems can use its idle facilities to manufacture another product that will contribute $220,000 to from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision operating income, but none of the fixed costs will be avoidable. Should TechSystems make or buy the analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. Complete the Best Use of Facilities Analysis. (Enter a 0 for any zero amounts.) TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the follawing (Click the icon to view the outsourcing decision analysis.) manufacturing costs when it produced 73,000 units last year: (Click the icon to view the manufacturing costs.) TechSystems needs 79,000 optical switches next year (assume same relevant range). By outsourcing Another company has offered to sell TechSystems the switch for $17.50 per unit. If TechSystems buys the switch TechSystems can use its idle facilities to manufacture another product that will contribute $220,000 to from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision operating income, but none of the fixed costs will be avoidable. Should TechSystems make or buy the switches? Show your analysis. analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. Data table Data table Complete the Bes Total variable cos Expected net cost of obtaining the optical switches
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started