Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rootsystems manufactures an optical switch that it

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

90.2K

Verified Solution

Question

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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

For a 3 digit code with distinct numbers. (0-9) How many combinations to get the code...

Physics
1.2K views

3. a) Draw a schematic diagram of an X-ray diffractometer. [4 marks] b) The results of an...

Basic Math
1.2K views

The head start program provides a wide range of services to low-income children up to the...

Finance
1.2K views

1-A pension fund manager is considering three mutual funds. The first is a stock fund, the...

Basic Math
1.2K views

Amazon com to Best Buy Amazon com Inc AMZN is one of the largest Internet...

Basic Math
1.2K views

Solve the given initial value problem x y 2x 1 y 1 5 dy dx...

Statistics
1.2K views

1 2 Compute the correlation coefficient x 16 5 2 3 y 1 3 6...

Calculus
1.2K views

Express 341000 m in scientific notation preserving the correct number of significant figures 3 4x105...

Accounting
1.2K views

Wicidad Company into a manufacturing machine in its production cay the beginning of the yer...

Accounting
1.2K views

In periods of rising prices, which of the following generally accepted accounting principles is violated...

Accounting
1.2K views

Prepare journal entries to record the previous transactions on the assumption that the goodwill (or...

Accounting
1.2K views

Cleveland Cove Enterprises is evaluating the purchase of an elaborate tydiraulic lift gystem for all...