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- Data Table 759,000 138,000 Direct materials Direct labor Variable MOH Fixed MOH 69,000 448,500 $ 1,414,500 Total manufacturing cost for 69,000 units Print Done - X Data Table Difference GlobalSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Variable cost per unit: Direct materials 11.00 $ 0.00 $ Direct labor 2.00 0.00 Variable overhead 1.00 0.00 Purchase price from outsider 0.00 16.50 $ 14.00 $ 16.50 $ Variable cost per unit 11.00 2.00 1.00 (16.50) (2.50) Print Done GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 69,000 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. If 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 (Click the icon to view the outsourcing decision analysis.) GlobalSystems needs 80,000 optical switches next year (assume same relevant range). By outsourcing them, GlobalSystems can use its idle facilities to manufacture another product that will contribute $110,000 to operating income, but none of the fixed costs will be avoidable. Should Global Systems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) GlobalSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches Global Systems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 69,000 units last year: Click the icon to view the manufacturing costs.) Another company has offered to sell Global Systems the switch for $16.50 per unit. If 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. (Click the icon to view the outsourcing decision analysis.) GlobalSystems needs 80,000 optical switches next year (assume same relevant range). By outsourcing them, GlobalSystems can use its idle facilities to manufacture another product that will contribute $110,000 to operating income, but none of the fixed costs will be avoidable. Should GlobalSystems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) GlobalSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product X Expected profit contribution from the other product Expected sales price of the other product Fixed unit cost of obtaining the optical switches Variable unit cost of obtaining the optical switches en click Check Answer. GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 69,000 units last year: B (Click the icon to view the manufacturing costs.) Another company has offered to sell GlobalSystems the switch for $16.50 per unit. If 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. Click the icon to view the outsourcing decision analysis.) GlobalSystems needs 80,000 optical switches next year (assume same relevant range). By outsourcing them, GlobalSystems can use its idle facilities to manufacture another product that will contribute $110,000 to operating income, but none of the fixed costs will be avoidable. Should Global Systems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) GlobalSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Conribution margin of optical switches Number of optical switches Sales price of optical switches in click Check Answer. Total variable cost of obtaining the optical switches GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 69,000 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. If Global Systems 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. Click the icon to view the outsourcing decision analysis.) GlobalSystems needs 80,000 optical switches next year (assume same relevant range). By outsourcing them, GlobalSystems can use its idle facilities to manufacture another product that will contribute $110,000 to operating income, but none of the fixed costs will be avoidable. Should GlobalSystems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) Expected profit contribution from the other product Expected sales price of the other product Buy and Use Facilities for Other Product Fixed unit cost of obtaining the optical switches Variable unit cost of obtaining the optical switches Expected net cost of obtaining the optical switches

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