produced $65,000$ units last year:

$($Click the icon to view the manufacturing costs.$)$

InteliSystems does not yet know how many switches it will need this year, however, another company has ofered to sell intelisystems he switch for $$16\mathrm{.}50$ per unit If InteliSystems buys the switch from the outside supplier, the manutacturing fsolliles that will be idie cannat 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 InteliSystems make or buy the switch? Show your analysis.

Complete an incremental analysis to show whether InteliSystems should make or buy the switch. $($Enter a $"0"$ for any zero amounts. Round a InteliSystems

Incremental Analysis for Outsourcing Decision

$\backslash$table$[[,\{$

$\backslash$table$[[$Make$],[$Unit$]]\},,$Buy$],[,,$Unit,Difference$],[$Variable cost per unit:$],[$Direct materials,$$,9\mathrm{.}00,$$$,0\mathrm{.}00,9\mathrm{.}00],[$Direct labor,,$2\mathrm{.}00,,0\mathrm{.}00,2\mathrm{.}00],[$Variable overhead,,$3\mathrm{.}00,,0\mathrm{.}00,3\mathrm{.}00],[$Purchase price from outsider,,$0\mathrm{.}00,,{16\mathrm{.}50}^{TT},(16\mathrm{.}50)$