Business, 11.03.2020 01:44 normahernandez977

InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 74,000 units last year: (Click the icon to view the manufacturing costs.) InteliSystems does not yet know how many switches it will need this year: however, another company has offered to sell InteliSystems the switch for exist9.50 per unit. If InteliSystems 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. Requirements Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis. Now, assume that InteliSystems can avoid exist95,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing. InteliSystems needs 79,000 switches a year rather than 74,000. What should InteliSystems do now? Given the last scenario, what is the most InteliSystems would be Willing to pay to outsource the switches?

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InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurr...

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