(Click the icon to view the outsourcing decision analysis.) CoolSystems manufactures an optical switch that it uses in its final product. CoolSystems incurred the following manufacturing costs when it produced 74,000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell Cool Systems the switch for $9.00 per unit. If CoolSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. Facilities for Other Make Product CoolSystems needs 84,000 optical switches next year (assume same relevant range). By outsourcing them, CoolSystems can use its idle facilities to manufacture another product that will contribute $110,000 to operating income, but none of the fixed costs will be avoidable. Should CoolSystems make or buy the switches? Show your analysis i Data Table - X $ Total variable cost of obtaining the optical switches Direct materials Direct labor Variable MOH Fixed MOH 592,000 148,000 74,000 Expected net cost of obtaining the optical switches 481,000 Total manufacturing cost for 74.000 units $ 1.295,000 Decision: Choose from any list or enter any number in the input fields and then continue to the next question Print Done Data Table Click the icon to view the outsourcing decision analysis.) CoolSystems needs 84.000 optical switches next year (assume same relevant range By outsourcing them. CoolSystems can use its idle facilities to manufacture another product that will contribute $110,00 to operating income, but none of the fixed costs will be avoidable. Should CoolSystems make or buy the switches? Show your analysis Buy Difference CoolSystems Incremental Analysis for Outsourcing Decision Make Unit Unit Variable cost per unit: Direct materials 8.00 $ 0.00 $ Direct labor 2.00 0.00 Variable overhead 1.00 0.00 0.00 9.00 Purchase price from outsider 11.00 $ 9.00 $ Variable cost per unit (9.00) 2.00 Print Done