The company expects an annual need for 6,000 switches. If the company makes the product, it will have to utilize factory space currently being leased toanother company for $3,800 a month. If the company decides to make the parts, total costs will be:Multiple ChoiceO$53.600 more than the switches are purchased$43.000 less than the switches are purchased$10.500 more then the chese purchased53.400 than the switches are purchased Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $37 each. The company isconsidering making the switches internally at the following projected annual production costs:Unit-level material costUnit-level labor costUnit-level overheadBatch-level set-up cost (6,000 units per batch)Product-level supervisory salariesAllocated facility-level costs$6$5$4$48,000$49,000$43,000The company expects an annual need for 6.000 switches. If the company makes the product, it will have to utilize factory space currently being leased toanother company for $3,800 a month. If the company decides to make the parts, total costs will be:

Relevant cost is the cost that is different between different alternatives. This cost is considered…

Answered: Benitez Company currently outsources a…

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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How do I prepare an analysis showing whether Jensen should process the assemblies further?
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