Do not give image format TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturingcosts when it produced 74,000 units last year:(Click the icon to view the manufacturing costs.)Read the requirements.Requirement 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis.Complete an incremental analysis to show whether TechSystems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.)TechSystemsIncremental Analysis for Outsourcing DecisionMakeUnitVariable cost per unit:Direct materialsDirect laborVariable overheadPurchase price from outsiderTotal variable cost per unitBuyUnitDifferenceTechSystems does not yet know how many switches it will need this year; however, another company has offered to seTechSystems the switch for $10.50 per unit. If TechSystems buys the switch from the outside supplier, themanufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidableData tableA1 Direct materials2 Direct labor3 Variable MOH4 Fixed MOH5 Total manufacturing cost for 74,000 unitsPrintDone$$B666,000111,000222,000518,0001,517,000X

Lets understand the basics.Management needs to choose between whether to buy product from outside or…

TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 74,000 units last year: (Click the icon to view the manufacturing costs.) Read the requirements. Requirement 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis. Complete an incremental analysis show whether TechSystems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the TechSystems Incremental Analysis for Outsourcing Decision Make Unit Buy Unit Difference TechSystems does not yet know how many switches it will need this year; however, another comp TechSystems the switch for $10.50 per unit. If TechSystems buys the switch from the outside sup manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed Data table 0 X

TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 74,000 units last year: (Click the icon to view the manufacturing costs.) Read the requirements. Requirement 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis. Complete an incremental analysis show whether TechSystems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the TechSystems Incremental Analysis for Outsourcing Decision Make Unit Buy Unit Difference TechSystems does not yet know how many switches it will need this year; however, another comp TechSystems the switch for $10.50 per unit. If TechSystems buys the switch from the outside sup manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed Data table 0 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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