Fibre Systems manufactures an optical switch that it uses in its final product. Fibre Systems incurred the following manufacturing costs when it produced 75,000 units last year. (Click the icon to view the manufacturing costs.) Fibre Systems does not yet know how many switches it will need this year, however, another company has offered to sell Fibre Systems the switch for $14 per unit. If Fibre Systems buys the switch from the outside supplier, the manufacturing facilities that become idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Requirements Requirement 1. Given the same cost structure, should Fibre Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether Fibre Systems should make or buy the switch. (Round your answers to the nearest cent. All boxes in the Cost to Make Minus Cost to Buy column should have a value entered.) Manufacturing costs X Fibre Systems Outsourcing Decision Make Buy Unit Unit Cost to Make Minus Cost to Buy 600.000 Variable cost per unit: Direct materials Direct labour Variable overhead Purchase price from outsider Direct materials Direct labour Variable overhead Fixed overhead 105,000 180,000 455,000 S 1,340,000 Total manufacturing cost for 75,000 units Total variable cost per unit Print Done Enter any number in the edit fields and then continue to the next question. ? Fibre Systems Outsourcing Decision Make switches Buy switches Variable cost per unit Units needed Total variable costs Fixed costs Total relevant costs Decision: because the to make the switches are the total relevant costs to buy the switches. Requirement 3. Given the last scenario, what is the most Fibre Systems would be willing to pay to outsource the switches? (Round your answers to the nearest cent.) Fibre Systems would be indifferent between outsourcing and making the switches if the outsourcing cost was $per switch. Therefore, Fibre Systems will only be willing to outsource if the outsourcing cost is $ per switch