Question: Refer to E8 25A TechSystems needs 83 000 optical switches next
Refer to E8- 25A. TechSystems needs 83,000 optical switches next year (assume same relevant range). By outsourcing them, TechSystems can use its idle facilities to manufacture another product that will contribute $ 210,000 to operating income, but none of the fixed costs will be avoidable. Should TechSystems make or buy the switches? Show your analysis.
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