Question: Refer to E8 38B Global Systems needs 80 000 optical switches

Refer to E8- 38B. Global Systems needs 80,000 optical switches next year (assume same relevant range). By outsourcing them, Global Systems can use its idle facilities to manufacture another product that will contribute $ 110,000 to operating income, but none of the fixed costs will be avoidable. Should Global Systems make or buy the switches? Show your analysis.

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  • CreatedAugust 27, 2014
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