Question: WorldSystems munufactures an optical switch that it uses in its final product. WorldSystems incurred the followirg manufacturing costs when it produced 65.000 unds last year:
WorldSystems munufactures an optical switch that it uses in its final product. WorldSystems incurred the followirg manufacturing costs when it produced 65.000 unds last year: (Click, the icon to vew the manufacturing costs ) Fead the teguiremects WoildSystens does not yet know how many swalches it will need this year, however, another company has offered to sell WorldSystems the swilch for $14 co per unit if Worlidsystems busy the swilch from the cutside supplier, the manufacturing faclities that will be idlo cannot be used for any other purpose, yet none of the fixed costs are aroidable. Requirements 1. Given the same cout structure, should Wollasystems make or buy the switch? Show your analys 2. Now, asume that WorlgSystems can avoid $110,000 of fired costs a yest by outsourcing prodvction. In addtion, beceuse sales ave increasing. What should the company do now? 3. Given the last scensia, what is ne mos Wotiesystems would be witing to pary to outsource the swithes? pw your analysis. Enter a " O " for any reeo amounts. Round amounts to the nourest cent, Use a minus sign of Data table
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