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Requirement 2. Now, assume that Tech Systems can avoid $97,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Tech Systems needs 76,000 switches a year rather than 71,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production and the number of units needed have increased. Tech Systems Outsourcing Decision Make Buy switches switches Total relevant costs Choose from any list or enter any number in the input fields and then click Check Answer. ? W E8-28A (similar to) Question Help Tech Systems manufactures an optical switch that it uses in its final product. Tech Systems incurred the following manufacturing costs when it produced 71,000 units last year: (Click the icon to view the manufacturing costs.) Tech Systems does not yet know how many switches it will need this year; however, another company has offered to sell Tech Systems the switch for $9.50 per unit. If Tech Systems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Read the requirements. Requirement 1. Given the same cost structure, should Tech Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether Tech Systems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Data Table Tech Systems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Direct materials $ Variable cost per unit: Direct materials Direct labor $ 9.00 $ 0.00 $ 9.00 639,000 106,500 71,000 497,000 Variable MOH 1.50 0.00 1.50 Direct labor Variable overhead Fixed MOH 1.00 0.00 1.00 $ 1,313,500 0.00 Purchase price from outsider 9.50 (9.50) Total manufacturing cost for 71,000 units $ 11.50 $ 9.50 $ 2.00 Total variable cost per unit Print Done Decision: Buy the optical switch because the variable cost per unit to make the switch is greater than the variable cost per unit to buy the switch. D....am Mai...naime thot Toobootamaran amid coz nnn af fiscad contacto.b. na inanmanina Taaho..ntamannada 7a non unitahan ...another than 71 non autoboa batabaid thanamnamudana. Choose from any list or enter any number in the input fields and then click Check Answer. ? parts Cloor AL Cbook