Global Systems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 74.000 units last year Click the icon to view the manufacturing costs) Another comp has offered to sell GlobalSystems the switch for $16.50 per unit. GlobalSystems buy the wwitch 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 Complete the Best Use of Facilities Analysis (Enter a " for any reramounts) GlobalSystems Best Use of Facilities Analysis Vanabe unt cost of obtaining the optical switches Number of optical swiches Tital variable cost of obtaining the optical switches Expected proft contribution from the other product Expected not cost of obtaining the optical switches ip me solve this Video Get more help. Make Buy and Use Facilities for Other Product (Click the icon to view the outsourcing decision analysis) Global Systems needs 79,000 optical switches next year (assume same relevant range) By outsourcing them, GlobalSystems can use its ide facilities to manufacture another product that will contribute $130.000 to operating income, but none of the feed costs will be avoidable Should Chamakathu the switches? Show your analys Data table. 1 Direct materials 2 Direct labor 3 Variable MOH Fixed MOH Total manufacturing cost for 74.000 units Data table Global Systems Incremental Analysis for Outsourcing Decision Variable cost per un Direct ma Direct labor Variable overhead Purchase price from outsider Variable 1 S Make Unit 11.00 S 1.00 3.00 0.00 15.00 S Buy Unit 0.00 $ 0.00 0:00 16.50 18.50 $ 814.000 74.000 222.000 $18.000 1828.000 1 Difference 11.00 1.00 3.00 (650) (1.50)
Global Systems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 74.000 units last year Click the icon to view the manufacturing costs) Another comp has offered to sell GlobalSystems the switch for $16.50 per unit. GlobalSystems buy the wwitch 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 Complete the Best Use of Facilities Analysis (Enter a " for any reramounts) GlobalSystems Best Use of Facilities Analysis Vanabe unt cost of obtaining the optical switches Number of optical swiches Tital variable cost of obtaining the optical switches Expected proft contribution from the other product Expected not cost of obtaining the optical switches ip me solve this Video Get more help. Make Buy and Use Facilities for Other Product (Click the icon to view the outsourcing decision analysis) Global Systems needs 79,000 optical switches next year (assume same relevant range) By outsourcing them, GlobalSystems can use its ide facilities to manufacture another product that will contribute $130.000 to operating income, but none of the feed costs will be avoidable Should Chamakathu the switches? Show your analys Data table. 1 Direct materials 2 Direct labor 3 Variable MOH Fixed MOH Total manufacturing cost for 74.000 units Data table Global Systems Incremental Analysis for Outsourcing Decision Variable cost per un Direct ma Direct labor Variable overhead Purchase price from outsider Variable 1 S Make Unit 11.00 S 1.00 3.00 0.00 15.00 S Buy Unit 0.00 $ 0.00 0:00 16.50 18.50 $ 814.000 74.000 222.000 $18.000 1828.000 1 Difference 11.00 1.00 3.00 (650) (1.50)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
B5.
Transcribed Image Text:GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following
manufacturing costs when it produced 74.000 units last year
(Click the icon to view the manufacturing costs)
Another company has offered to sell GlobalSystems the switch for $16.50 per unit. GlobalSystems 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
Complete the Best Use of Facilities Analysis (Enter a "0" for any zero amounts)
GlobalSystems
Best Use of Facilities Analysis
Variable unt cost of obtaining the opocal switches
Number of optical ches
Tital variable cost of obtaining the optical switches
Expected pro contribution from the other product
Expected not cost of obtaining the optical switches
ip me solve this Video Get more help.
Make
Buy and Use
Facilities for Other
Product
CID
(Click the icon to view the outsourcing decision analysis)
GlobalSystems needs 78,000 optical switches next year (assume same relevant range). By outsourcing
them, GlobalSystems can use its idio facilities to manufacture another product that will contribut $130.000
to operating income, but none of the fixed coats will be avoidable Should Cichalema maka...the
switches? Show your analys
Data table
1 Direct materials
2 Direct labor
3 Variable MOH
A Fixed MOH
5 Total manufacturing cost for 74.000 units
Data table
GlobalSystems
Incremental Analysis for Outsourcing Decision
Variable cost per unit
Direct materi
Direct labor
Variable overhead
Purchase price from
outsider
Variable cost per unit
1
$
Make
Unit
11.00 S
1.00
3.00
0.00
15.00
Buy
Unit
0.00 $
0.00
0.00
16.50
15.50
$
1
814.000
74,000
222.000
$18.000
1,628,000
Difference
11.00
1.00
3.00
(1650)
(1.50)
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