WorldSystems manufactures an optical switch that it uses in its final product. WorldSystems incurred the following manufacturing costs when it produced 66,000 units last year (Click the icon to view the manufacturing costs.) Another company has offered to sell WorldSystems the switch for $9.00 per unit. If WorldSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision 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.) World Systems !!! (Click the icon to view the outsourcing decision analysis.) WorldSystems needs 78,000 optical switches next year (assume same relevant range) By outsourcing them, WorldSystems can use its idle facilities to manufacture another product that will contribute $218,000 to operating income, but none of the fixed costs will be avoidable Should WorldSystems make or buy the switches? Show your analysis switch sion he actites an optical switch that it uses in its final product WorldSystems incurred the uning costs when it produced 66,000 units last year EFR (Click the icon wow the outsourcing decision analysis) s needs 78,000 optical switches next year (assume same relevantage) By out is can use its ide facilities to manufacture another product that will contribute 21 none of the fixed costs will be ivoidable. Should World Systens make or buy the Data Table pl Data Table U A Difference 1 Direct materials 5 594.000 GS DOO World Systems Incremental Analysis for Outsourcing Decision Make Bury Unit Unit Variable cost per unit Direct materials 5 9.00 $ 0.00 $ Direct labor 1.00 Vainable overheid 0.00 000 9.00 Purchase price from outsider 1200 S 9.00 $ Variable cost per unit 2 Direct labor 3 Variable MOH 900 0.00 + Fixed MOH 132.000 462 000 1254 000 200 $ 1.00 200 (9.00) 3.00 Total manufacturing cost for 66,000 units Print Done Print Done 19 o 101 HI from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches Choose from any list or enter any number in the input fields and then continue to the next question. javascript:doExercise (9) o TOSHIBA inc you ysteins wys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of makang the switches versus the cost per unit of buying (outsourcing) the switches Buy and Use Facilities for Other Make Product Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches Decision Choose from any list or enter any number in the input fields and then continue to the next question javascript.doExercise TOSHIBA
