Inteli Systems manufactures an optical switch that it uses in its final product. Inteli Systems incurred the following manufacturing costs when it produced 71,000 units last year: E (Click the icon to view the manufacturing costs.) Inteli Systems does not yet know how many switches it will need this year, however, another company has offered to sell Inteli Systems the switch for $14.50 per unit. If Inteli 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 Requirements 1. Given the same cost structure, should Inteli Systems make or buy the switch? Show your analysis. 2. Take a deep breath. 3. Trust your instincts. OD Requirement 1. Given the same cost structure, should Inteli Systems make or buy the switch? Show your analysis Complete an incremental analysis to show whether Inteli Systems should make or buy the switch. (Leave any unused cells blank. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Inteli Systems - X Incremental Analysis for Outsourcing Decision Cost to Make Minus Make Unit Buy Unit Cost to Buy Data table Variable cost per unit: Direct materials $ 639,000 Direct labor 142,000 Variable overhead 71,000 461,500 Fixed overhead 1,313,500 Total manufacturing cost for 71,000 units Total variable cost per unit Decision: because the variable cost per unit to make the switch is than the variable cost per unit to buy the switch. Print Done