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will thumbs up if answered very quick Benitez Company currently outsources a relay switch that is a component in one of its products. The switches
will thumbs up if answered very quick
Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $16 each. The company is considering making the switches internally at the following projected annual production costs: Unit-level material cost Unit-level labor cost Unit-level overhead Batch-level set-up cost (9,000 units per batch)35,000 Product-level supervisory salaries Allocated facility-level costs $42,500 $30,000 The company expects an annual need for 9,000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $2,500 a month. If the company decides to make the parts, total costs will be: Multiple Cholce $25,000 less than if the switches are purchased $47,500 more than if the switches are purchased. $17,500 more than if the switches are purchased. $30,000 less than if the switches are purchasedStep by Step Solution
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