Business, 02.08.2021 23:20 supercutedonuf3753

Great Products Company currently outsources a relay switch that is a component in one of its products. The switches cost $36 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 ( 5,000 units per batch) $41,000
Product-level supervisory salaries $45,500
Allocated facility-level cost $36,000
The company expects an annual need for 5,000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $3,100 a month. If the company decides to make the parts, what will total costs be?

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