DROP DOWN OPTIONS

Data table Variable costs: Direct materials Direct labor Variable overhead Purchase price from outsider Differential cost per unit Make optical switch $ 7.00 1.50 2.00 $ 10.50 $ Outsource Difference optical switch (Make-Outsource) $ 7.00 1.50 2.00 (12.00) (1.50) $ 12.00 12.00 $ X Laser Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Laser Systems the switch for $12.00 per unit. None of Laser's fixed costs are avoidable. Laser Systems needs 82,000 optical switches. By outsourcing them, Laser Systems can use its idle facilities to manufacture another product that will contribute $223,000 operating income. (Click the icon to view the outsourcing decision.) Read the requirements. Requirement 1. Identify the expected net costs that Laser Systems will incur to acquire 82,000 switches under three alternative plans. Outsource switches Facilities Idle Make new product Switch costs Make Variable 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 Requirement 2. Which plan makes the best use of Laser System's facilities? Support your answer. Laser Systems should However, Laser Systems should also consider qualitative factors such as because this plan results in the lowest and Requirement 2. Which plan makes the best use of Laser System's facilities? Support your answer. Laser Systems should However, Laser Systen make the optical switches outsource the optical switches and leave the facilities idle outsource the optical switches and use the facilities to manufacture the other product Screen Shot 2022-05-21 at 4.5... Requirement 2. Which plan makes the best use of Laser System's facilities? Support your answer. Laser Systems should such as cost to make a new product differential unit cost of obtaining the optical switches expected net cost of obtaining the optical switches Screen Shot 2022-05-21 at 4.5... However, Laser Systems should also consider qualitative factors such as Q accountability, quality, because this plan results. the lowest and Q Search because this plan results in the lowest and 0 and Q Search is Screen Shot 2022-05-21 at 4.5... However, Laser Systems should also consider qualitative factors such as Screen Shot 2022-05-21 at 4.5... However, Laser Systems should also consider qualitative factors such as and Q Search certainty of on-time deliveries, decision of outsourcing employees, M W Q Search and certainty of future prices matching the quoted price employee morale