Question: Tech systems manufactures an optical switch that it uses its final product. The switch has the following manufacturing costs per unit : Prepare an outsourcing


was the following manufacturing costs per unit: formation.) y the switch. (For the Difference column, use a minus sign or parenthese ence X 1 Data Table $ 10.00 Direct materials 4.50 Direct labor 8.00 Variable overhead 8.00 Fixed overhead $ 30.50 Manufacturing product cost Print Done Make-Outsource) i More Info Another company has offered to sell Tech Systems the switch for $25.50 per unit. If Tech Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Print Done E25-18 (similar to) Tech Systems manufactures an optical switch that it uses in its final product. The switch has the follow Click the icon to view the costs.) (Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Tech Systems should make or buy the switch. ( in-house.) Difference Make optical switch Outsource optical switch (Make-Outsource) Variable costs: Direct materials Direct labor Variable overhead Purchase price from outsider Total differential cost per unit
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