Question: Hi, pls clearly explain how to solve this step by step. WorldSystems manufactures an optical switch that it uses in its final product. WorldSystems incurred

Hi, pls clearly explain how to solve this step by step. WorldSystems

Hi, pls clearly explain how to solve this step by step.

WorldSystems manufactures an optical switch that it uses in its final product. WorldSystems incurred the following manufacturing costs when it produced 69,000 units last year: WorldSystems needs 83,000 optical switches next year (assume same relevant range). By outsourcing them, WorldSystems can use its idle facilities to manufacture another product that will contribute $130,000 to Another company has offered to sell WorldSystems the switch for $12.00 per unit. If WorldSystems buys the switch from the operating income, but none of the fixed costs will be avoidable. Should WorldSystems make or buy the switches? Show outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing your analysis

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