Homework: Chapter $8$ HW

Question $3,$ E$8-30$A $($similar to$)$

HW Score: $87\mathrm{.}6\%,8\mathrm{.}76$ of $10$ points

Part $1$ of $6$

Points: $1\mathrm{.}04$ of $2$

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Question $1$

Question $2$

$\%$ Question $3$

Question $4$

Question $5$

Question $6$

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TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced $68,000$ units last year

$($Click the icon to view the manufacturing costs$)$

Read the requirements

Requirement $1.$ Given the same cost structure, should TechSystems make or buy the switch? Show your analysis the cost to buy exceeds the cost to make.$)$

TechSystems

Incremental Analysis for Outsourcing Decision

TechSystems does not yet know how many switches it will need this year, however, another company has offered to sell TechSystems the switch for $$11\mathrm{.}50$ per unit. If TechSystems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable

$\backslash$table$[[\backslash$table$[[$TechSystems$],[$Incremental Analysis for Outsourcing Decision$]],$Data table$],[,\backslash$table$[[$Make$],[$Unit$]],\backslash$table$[[$Buy$],[$Unit$]],$Difference,A$,$B$],[$Variable cost per unit,,,,$1,$Direct materials,$$,680,000],[$Direct materials,,,,$2,$Direct labor,,$136,000],[$Direct labor,,,,$3,$Variable MOH,,$204,000],[$Variable overhead,,,,$4,$Fixed MOH,,$408,000],[$Purchase price from outsider,,,,$5,$Total manufacturing cost for $68,000$ units,$$,1,428,000$