Image Systems manufactures an optical switch that it uses in its final product. Another company has...
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Image Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Image Systems the switch for $19.00 per unit. None of Image's fixed costs are avoidable. (Click the icon to view the outsourcing decision.) Requirement 1. Identify the expected net costs that Image Systems will incur to acquire 82.000 switches under three alternative plans. Data Table Va Pu Ex Tol Re Ima Variable costs: Direct materials Direct labor Variable overhead Purchase price from outsider Differential cost per unit Outsource optical switch optical switch $ $ Make Print 7.00 2.50 8.00 $ 17.50 $ Done Difference (Make-Outsource) $ 19.00 19.00 $ Hol Enter any number in the edit fields and then continue to the next question. 7.00 2.50 Image Systems needs 82,000 optical switches. By outsourcing them, Image Systems can use its idle facilities to manufacture another product that will contribute $250,000 to operating income. Read the requirements. 8.00 (19.00) (1.50) Requirements. 1. Identify the expected net costs that Image Systems will incur to acquire 82,000 switches under three alternative plans: make the switches, buy the switches and leave facilities idle, buy the switches and use the idle facilities to make another product. 2. Which plan makes the best use of Image System's facilities? Support your answer. because this plan results in the lowest and Print Done ▼ Requirement 1. Identify the expected net costs that Image Systems will incur to acquire 82,000 switches under alternative plans. Variable costs: Switch costs Direct materials Direct labor Variable manufacturing overhead Purchase cost Expected profit contribution from the other product Total expected net cost of the optical switches Make Outsource switches Facilities Idle Make new product Requirement 2. Which plan makes the best use of Image System's facilities? Support your answer. Image Systems should plan results in the lowest However, Image Systems should also consider qualitative factors such as and because this Image Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Image Systems the switch for $19.00 per unit. None of Image's fixed costs are avoidable. (Click the icon to view the outsourcing decision.) Requirement 1. Identify the expected net costs that Image Systems will incur to acquire 82.000 switches under three alternative plans. Data Table Va Pu Ex Tol Re Ima Variable costs: Direct materials Direct labor Variable overhead Purchase price from outsider Differential cost per unit Outsource optical switch optical switch $ $ Make Print 7.00 2.50 8.00 $ 17.50 $ Done Difference (Make-Outsource) $ 19.00 19.00 $ Hol Enter any number in the edit fields and then continue to the next question. 7.00 2.50 Image Systems needs 82,000 optical switches. By outsourcing them, Image Systems can use its idle facilities to manufacture another product that will contribute $250,000 to operating income. Read the requirements. 8.00 (19.00) (1.50) Requirements. 1. Identify the expected net costs that Image Systems will incur to acquire 82,000 switches under three alternative plans: make the switches, buy the switches and leave facilities idle, buy the switches and use the idle facilities to make another product. 2. Which plan makes the best use of Image System's facilities? Support your answer. because this plan results in the lowest and Print Done ▼ Requirement 1. Identify the expected net costs that Image Systems will incur to acquire 82,000 switches under alternative plans. Variable costs: Switch costs Direct materials Direct labor Variable manufacturing overhead Purchase cost Expected profit contribution from the other product Total expected net cost of the optical switches Make Outsource switches Facilities Idle Make new product Requirement 2. Which plan makes the best use of Image System's facilities? Support your answer. Image Systems should plan results in the lowest However, Image Systems should also consider qualitative factors such as and because this
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Requirement 1 Switch Costs Variable costs Direct materials 700 x 82000 Direc... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
Posted Date:
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