Question: 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

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.
In E8-25A

1 Direct materials 2 Direct labor 3 Variable MOH 4 Fxed MOH 5 Total manufacturing cost for 68,000 units 612,000 136,000 68,000

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