Business, 19.03.2020 22:29 twirlergirl800

TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 72 comma 000 units last year: LOADING...(Click the icon to view the manufacturing costs.) Another company has offered to sell TechSystems the switch for $ 11.50 per unit. If TechSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. LOADING...(Click the icon to view the outsourcing decision analysis.) TechSystems needs 81 comma 000 optical switches next year (assume same relevant range). By outsourcing them, TechSystems can use its idle facilities to manufacture another product that will contribute $ 110 comma 000 to operating income, but none of the fixed costs will be avoidable. Should TechSystems make or buy the switches? Show your analysis.

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TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred t...

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