E8-29A (book/static) Question Help InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 70,000 units last year (Cick the icon to view the manufacturing costs.) Another company has offered to sell InteliSystems the switch for $8.50 per unit. If InteliSystems 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. EEB (Click the icon to view the outsourcing decision analysis.) InteliSystems needs 79,000 optical switches next year (assume same relevant range). By outsourcing them, InteliSystems can use its idle facilities to manufacture another product that will contribute $140,000 to operating income but none of the fixed costs will be avoidable. Should InteliSystems make or buy the switches? Show your analysis. Data Table Complete the Best Use of Facilities Analysis (Enter a "0"for any zero amounts ) InteliSystems Best Use of Facilities Analysis Inteli Systems Incremental Analysis for Outsourcing Decision Buy and Use Facilities for Other Product Make Buy Unit Make Unit Difference Variable cost per unit Direct materials Direct labor Variable overhead 8.00 $ 1.50 1.00 0.00 10.50 $ 0.00 S 0.00 0.00 8.50 8.50 S 8.00 1.50 1.00 (8.50) 2.00 Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches Data Table Print Done Direct materials Direct labor Variable MOH Fixed MOH Total manufacturing cost for 70,000 unils 560,000 105,000 70,000 455.000 $ 1,190,000 Choose trom any list or enter any number in the input felds and then click Check Check