Question: Requirement 1. Given the same cost structure, should WorldSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether WorldSystems

 Requirement 1. Given the same cost structure, should WorldSystems make or
buy the switch? Show your analysis. Complete an incremental analysis to show
whether WorldSystems should make or buy the switch. (Enter a "0" for
any zero amounts. Round amounts to the nearest cent. Use a minus
sign or parentheses when the cost to buy exceeds the cost to

Requirement 1. Given the same cost structure, should WorldSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether WorldSystems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) WorldSystems manufactures an optical switch that it uses in its final product. WorldSystems incurred the following manufacturing costs WorldSystems does not yet know how many switches it will when it produced 73,000 units last year: need this year, however, another company has offered to sell WorldSystems the switch for $19.50 per unit. If WorldSystems 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. Decision: because the variable cost per unit to make the switch is than the variable cost per unit to buy the switch. Requirement 2. Now, assume that WorldSystems can avoid $108,000 of fixed costs a year by outsourcing production. In addition. because sales are increasing. WorldSystems needs 78,000 switches a year rather than 73,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production and the number of units needed have increased. because sales are increasing. WorldSystems needs 78,000 switches a year rather than 73,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production and the number of units needed have increased. Data table Requirements 1. Given the same cost structure, should WorldSystems make or buy the switch? Show your analysis. 2. Now, assume that WorldSystems can avoid $108,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, WorldSystems needs 78,000 switches a year rather than 73,000 switches. What should the company do now? 3. Given the last scenario, what is the most WorldSystems would be willing to pay to outsource the switches

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