Opti Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Opti Systems the switch for $$18\mathrm{.}50$ per unit. None of Opti's fixed costs are avoidable.

$($Click the icon to view the outsourcing decision.$)$

Opti Systems needs $82,000$ optical switches. By outsourcing them, Opti Systems can use its idle facilities to manufacture another product that will contribute $$223,000$ to operating income.

Read the requirements.

Requirement $1.$ Identify the expected net costs that Opti Systems will incur to acquire $82,000$ switches under three alternative plans.

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