(Click the icon to view the outsourcing decision analysis.) Tech Systems manufactures an optical switch that it uses in its final product. Tech Systems incurred the following manufacturing costs when it produced 72,000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell Tech Systems the switch for $15.50 per unit. If Tech Systems 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. Tech Systems needs 80,000 optical switches next year (assume same relevant range). By outsourcing them, Tech Systems 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 Tech Systems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) Tech Systems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches Choose from any list or enter any number in the input fields and then click Check Answer. i Data Table V ^ rating income, but none of the fixed costs will be avoidable. Should TechSystems make es? Show your analysis. - Tech Systems Incremental Analysis for Outsourcing Decision i Data Table Make Unit Buy Unit Difference 0.00 $ Variable cost per unit: Direct materials Direct labor Variable overhead Direct materials Direct labor Variable MOH 720,000 72,000 10.00 $ 1.00 2.00 0.00 0.00 0.00 15.50 10.00 1.00 2.00 (15.50) 144,000 396,000 Fixed MOH Purchase price from outsider Total manufacturing cost for 72,000 units $ 1,332,000 13.00 $ 15.50 $ (2.50) Variable cost per unit Print Done Print Done (Click the icon to view the outsourcing decision analysis.) Tech Systems manufactures an optical switch that it uses in its final product. Tech Systems incurred the following manufacturing costs when it produced 72,000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell Tech Systems the switch for $15.50 per unit. If Tech Systems 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. Tech Systems needs 80,000 optical switches next year (assume same relevant range). By outsourcing them, Tech Systems 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 Tech Systems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) Tech Systems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches Choose from any list or enter any number in the input fields and then click Check Answer. i Data Table V ^ rating income, but none of the fixed costs will be avoidable. Should TechSystems make es? Show your analysis. - Tech Systems Incremental Analysis for Outsourcing Decision i Data Table Make Unit Buy Unit Difference 0.00 $ Variable cost per unit: Direct materials Direct labor Variable overhead Direct materials Direct labor Variable MOH 720,000 72,000 10.00 $ 1.00 2.00 0.00 0.00 0.00 15.50 10.00 1.00 2.00 (15.50) 144,000 396,000 Fixed MOH Purchase price from outsider Total manufacturing cost for 72,000 units $ 1,332,000 13.00 $ 15.50 $ (2.50) Variable cost per unit Print Done Print Done