Question: please answer all parts Intel Systems manufactures an optical switch that it uses in its final product, inteliSysterns incurred the following manulacturing costs when it

please answer all parts  please answer all parts Intel Systems manufactures an optical switch that
it uses in its final product, inteliSysterns incurred the following manulacturing costs
when it peoduced 70,000 inits last year: (Click the icon to view

Intel Systems manufactures an optical switch that it uses in its final product, inteliSysterns incurred the following manulacturing costs when it peoduced 70,000 inits last year: (Click the icon to view the manufacturing costs.) Inteil Systems does not yet know how many switches a will need this year, however, another company has oflered to sell intel Systems the swilch for $9.50 per une if InteiSysiems buys the switch from the outside supplier, the manutacturng faciltes that will be idie cannot be used for any other purpose, yet none of the fixed cous are avoidable. Read the requirements Requirement 1, Given the same cost structure, should intelisystems make or buy the swach? Show your analys. Complete an incremental analysis to show whecher Intelsystems should make or buy the switch. (Enter a "Or for any zoro amounts. Round amounts to the nearest cent. Use a minus sign of parentheses when the cost to buy exceeds the cost to make.) Requirements 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis. 2. Now, assume that InteliSystems can avoid $105,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSystems needs 75,000 switches a year rather than 70,000 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? Data table

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!