Question: undefined Cool Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the
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Cool Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon to view the costs.) Another company has offered to sell Cool Systems the switch for $9.00 per unit. If Cool Systems buys the switch from the outside supplier, the manufacturing facilities that will be idled cannot be used for any other purpose, yet none of the fixed costs are avoidable. Prepare an outsourcing analysis to determine whether Cool Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the swithoes in-house.) Data Table - X Make Outsource Difference optical switch optical switch (makeoutsource) Variable costs: Direct Material $ 8.00 Direct materials Direct Labor 1.50 Direct labor Variable Overhead 2.00 Variable overhead 8.00 Fixed Overhead Purchase price from outsider 17.50 Manufacturing Product Cost Total differential cost per unit Print Done
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