Question: Fequirements 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis. 2. Now, assume that InteliSystems can avoid $106,000




Fequirements 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis. 2. Now, assume that InteliSystems can avoid $106,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSystems needs 76,000 switches a year rather than 71,000 switches. What should the company do now? 3. Given the last scenario, what is the most InteliSystems would be willing to pay to outsource the switches? Print Done Data table A B 1 Direct materials $ 781,000 2 Direct labor 142,000 3 Variable MOH 213,000 4 Fixed MOH 426,000 5 Total manufacturing cost for 71,000 units $ 1,562,000 Print Done Q E Homework: Graded Chapter 8 HW P3 teliSystems manufactures an optical switch that it uses in its final product. InteliSystems in llowing manufacturing costs when it produced 71,000 units last year: (Click the icon to view the manufacturing costs.) ead the requirements. equirement 1. Given the same cost structure, should InteliSystems make or buy the switch milar to) > HW Score: 0%, 0 of 15 points O Points: 0 of 6 Sa InteliSystems does not yet know how many switches it will need this year; however, another com has offered to sell InteliSystems the switch for $14.50 per unit. If InteliSystems buys the switch f the outside supplier, the manufacturing facilities that will be idle cannot be used for any other pu yet none of the fixed costs are avoidable
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