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RootSystems manufactures an optical switch that it uses in its final product. RootSystems incurred the...

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Accounting

RootSystems manufactures an optical switch that it uses in its final product. RootSystems incurred the following manufacturing costs when it produced 68,000 units last year:
(Click the icon to view the manufacturing costs.)
Read the requirements.
RootSystems does not yet know how many switches it will need this year; however, another company has offered to sell RootSystems the switch for $16.00 per unit. If RootSystems 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.
Requirement 1. Given the same cost structure, should RootSystems make or buy the switch? Show your analysis. parentheses when the cost to buy exceeds the cost to make.)
RootSystems
Incremental Analysis for Outsourcing Decision
\table[[Make,Buy,],[Unit,Unit,Difference]]
Variable cost per unit:
Total variable cost per unit
image

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