Business, 14.03.2020 06:22 happy121906

Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $26 each. The company is considering making the switches internally at the following projected annual production costs: Unit-level material cost $ 6 Unit-level labor cost $ 5 Unit-level overhead $ 4 Batch-level set-up cost (8,000 units per batch) $ 34,000 Product-level supervisory salaries $ 42,000 Allocated facility-level costs $ 29,000 The company expects an annual need for 8,000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $2,400 a month. If the company decides to make the parts, total costs will be.

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Benitez Company currently outsources a relay switch that is a component in one of its products. The...

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