Sensor Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit:

Prepare an outsourcing analysis to determine whether Sensor Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the switches in-house.)

Sensor Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon to view the costs.) (Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Sensor Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the switches in-house.) Make Outsource Difference (Make-Outsource) optical switch optical switch Variable costs: Direct materials Direct labor Variable overhead Purchase price from outsider Total differential cost per unit Decision: Data Table A More Info Direct materials Another company has offered to sell Sensor Systems the switch for $17.50 per unit. If Sensor Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. 7.00 3.50 5.00 6.00 Direct labor Variable overhead Fixed overhead Print Print Done Done $ 21.50 Manufacturing product cost Print Done