Question Help Fiber Systems manufactures an optical switch that it uses in its final product. Fiber Systems Incurred the following manufacturing costs when it produced 74,000 units last year m Click the icon to view the manufacturing costs.) Fiber Systems does not yet know how many switches will need this year, however, another company has offered to Fiber Systems the switch for $14.50 per unit. Fiber Systems buys the switch from the outside suppler, the manufacturing facilities that will be Idle cannot be used for any other purpose, yet none of the food costs are avoidable Read the requirements Unit Unit Difference Variable cost per unit Direct materials Direct labor Variable overhead Purchase price from outsider 0.00 $ 0.00 8.00 S 1.00 2.00 0.00 8.00 1.00 2.00 0.00 14.50 (14.50) $ Total variable cost per unit 11.00 $ 14.30 13.50 Decision: Make the optical switch because the variable cost per unit to make the switch is los than the variable cost per unit to buy the switch Requirement 2. Now, assume that FiberSystems can avoid $104,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Fiber Systems reeds 79,000 switches a year rather than 74,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming foxed costs can be avo Data Table FiberSystems Outsourcing Decision Make Buy Direct materials 592,000 switches switches Direct labor 74,000 Variable cost per unit $ 11.00 $ 14.50 Variable MOH 148,000 Units needed 444,000 Food MOH Total variable costs Total manufacturing cost for 74.000 units 1,258,000 Fixed costs Print Done Total relevant costs Choose from any list or enter any number in the input fields and then click Chad