i Requirements C em s! 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. 2. Now, assume that CoolSystems can avoid $95,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, CoolSystems needs 72,000 switches a year rather than 67,000 switches. What should the company do now? 3. Given the last scenario, what is the most CoolSystems would be willing to pay to outsource the switches? i Data Table Direct materials Direct labor Variable MOH 536,000 67,000 134,000 435,500 1,172,500 Fixed MOH Total manufacturing cost for 67,000 units $ Cool Systems manufactures an optical switch that it uses in its final product CoolSystems incurred the following manufacturing costs when it produced 67,000 units last year FH (Click the icon to view the manufacturing costs.) CoolSystems does not yet know how many switches it will need this year, however another company has offered to sell CoolSystems the switch for 59 00 per unit CoolSystems buys the switch from the outside supplier, the manufacturing facilities will be idle cannot be used for any other purpose, yet none of the food costs are avoidable Read the requirements CoolSystems Incremental Analysis for Outsourcing Decision Make Buy Ini In Difference Choose from any list or enter any number in the input fields and then click Check Answer Read the requirements Make Buy Unit SUnit Difference Variable cost per unit Total variable cost per unit