90.2K

Verified Solution

Link Copied!

World Systems manufactures an optical switch that it uses in its final product. WorldSystems incurred the following manufacturing costs when it produced 65,000 units last year: E (Click the icon to view the manufacturing costs.) WorldSys another WorldSys will be idle avoidable Read the requirements. Requirement 1. Given the same cost structure, should World Systems make or buy the switch? Show Complete an incremental analysis to show whether WorldSystems should make or buy the switch. (En minus sign or parentheses when the cost to buy exceeds the cost to make.) WorldSystems i Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Total variable cost per unit Choose from any list or enter any number in the input fields and then click Check Answer. 5 pants remaining Clear All units WorldSystems does not yet know how many switches it will need this year; however, another company has offered to sell WorldSystems the switch for $7.50 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. uy the switch? Show your analysis. or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a - X 0 Data Table ifference B 1 Direct materials $ 520.000 2) 2 Direct labor 130,000 3 Variable MOH 65,000 357.500 4 Fixed MOH $ 1,072,500 5 Total manufacturing cost for 65,000 units Print Done ? Check

Answer & Explanation Solved by verified expert

See Answer