Direct materials $ 737,000 Direct labor 134,000 Variable MOH 67,000 435,500 Fixed MOH $ Total manufacturing cost for 67,000 units 1,373,500 Print Done dable The company i Data Table CoolSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Direct materials 11.00 $ 0.00 $ 11.00 Direct labor 2.00 0.00 Variable overhead 1.00 0.00 0.00 11.00 2.00 1.00 (11.00) Purchase price from outsider $ 14.00 $ 11.00 $ 3.00 Variable cost per unit Print Done CoolSystems manufactures an optical switch that it uses in its final product. CoolSystems incurred the following manufacturing costs when it (Click the icon to view the outsourcing decision analysis.) produced 67,000 units last year: CoolSystems needs 83,000 optical switches next year (assume same (Click the icon to view the manufacturing costs.) relevant range). By outsourcing them, CoolSystems can use its idle Another company has offered to sell CoolSystems the switch for $11.00 facilities to manufacture another product that will contribute $140,000 to per unit. If CoolSystems buys the switch from the outside supplier, none of operating income, but none of the fixed costs will be avoidable. Should the fixed costs are avoidable. The company prepared an outsourcing CoolSystems make or buy the switches? Show your analysis. decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) CoolSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Product Make Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches Make Product Expected profit contribution from the other product Expected sales price of the other product Fixed unit cost of obtaining the optical switches Variable unit cost of obtaining the optical switches CoolSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Conribution margin of optical switches Number of optical switches Sales price of optical switches Total variable cost of obtaining the optical switches