How do I solve for the outsourcing cost at which RootRootSystems would be indifferent between outsourcing and making the switches (Requirement 3)?

Requirement 2. Now, assume that RootSystems can avoid $104,000 of fxed costs a year by outsourcing production. In addition, because sales are increasing, RootSystems needs 79,000 switches a year rather than 74,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production ad the number of units needed have increased RootSystems Outsourcing Decision Make Buy switche5 switches Units needed Variable cost per unit Total variable costs Fixed costs Total relevant costs S 79000.00 $ 79000.00 16.5 1,303,500 1,027,000 18.000 414,000 S 1,545,000 $ 1,717,500 Decision: Make the optical switch because the total relevant costs to make the switches are less than the total relevant costs to buy the switches. Requirement 3. Given the last scenario, what is the most RootSystems would be willing to pay to outsource the switches? Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit. Cost if making switches Cost if outsourcing switches Variable costs+ Fixed costs Variable oosts+Fixed costs Using the basic formula you determined above, solve for the outsourcing cost at which RootSystems would be indifferent between outsourcing and making the switches. (Enter your per unit calculation to the nearest cent.) RootSystems would be indifferent between outsourcing and making the switches if the outsourcing cost was $ per switch. Therefore, Systems will only be willing to outsource if the outsourcing cost is less than This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. 14.32 per 14.32 switch