Please help Please help with requirements 2 and 3 in this question

BestSystems manufactures an optical switch that it uses in its final product. BestSystems incurred the following manufacturing costs when it produced 69,000 units last year: B (Click the icon to view the manufacturing costs.) BestSystems does not yet know how many switches it will need this year; however, another company has offered to sell BestSystems the switch for $8.50 per unit. If BestSystems 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. Purchase price from outsid Data table Direct materials Direct labor Variable overhead Direct materials $ 621,000 Total variable cost per unit Direct labor 138,000 Variable MOH 69,000 448,500 Decision: Buy the optical swita the switch. st per unit to buy Fixed MOH $ 1,276,500 Total manufacturing cost for 69,000 units ddition, because do now? Requirement 2. Now, assume sales are increasing, BestSyst Complete an outsourcing decis needed have increased. er of units Print Done BE Outso Make Buy Requirements 1. Given the same cost structure, should BestSystems make or buy the switch? Show your analysis. 2. Now, assume that BestSystems can avoid $102,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, BestSystems needs 74,000 switches a year rather than 69,000 switches. What should the company do now? 3. Given the last scenario, what is the most BestSystems would be willing to pay to outsource the switches? Clear all Final check BestSystems manufactures an optical switch that it uses in its final product. BestSystems incurred the following manufacturing costs when it produced 69,000 units last year: (Click the icon to view the manufacturing costs.) BestSystems does not yet know how many switches it will need this year; however, another company has offered to sell BestSystems the switch for $8.50 per unit. If BestSystems 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. Purchase price from outsider $ 0.00 $ 8.50 $ (8.50) Direct materials 9.00 0.00 9.00 Direct labor 2.00 0.00 2.00 Variable overhead 1.00 0.00 1.00 $ 12.00 $ 8.50 $ 3.50 Total variable cost per unit because the variable cost per unit to make the switch is greater than the variable cost per unit to buy Decision: Buy the optical switch the switch. Requirement 2. Now, assume that BestSystems can avoid $102,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, BestSystems needs 74,000 switches a year rather than 69,000 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. BestSystems Outsourcing Decision Make Buy switches switches Units needed 666000 74000 Variable cost per unit Fixed costs 102000 0 Total variable costs 629000 990000 629000 Total relevant costs