Tech Systems manufactures an optical switch that it uses in its final product Tech Systems incurred the following manufacturing costs when it produced 70,000 units last year (Click the icon to view the manufacturing costs) Read the requirements Tech Systems does not yet know how many switches it will need this year, however, another company has offered to sell Tech Systems the switch for $12.50 per unit i Tech Systems 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 food costs are avoidable Requirement 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis Complete an incremental analysis to show whether TechSystems should make or buy the switch (Enter a "0" for any zoro amounts Round amounts to the nearest cont Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Tech Systems Requirements Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis Variable cost per unit 2. Now, assume that Tech Systems can avoid $108,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Tech Systems needs 75,000 switches a year rather than 70,000 switches What should the company do now? 3. Given the last scenario, what is the most Tech Systems would be wiling to pay to outsource the switches? Total variable cost per unit Print Done Data Table X Direct materials $ 560,000 Direct labor 140,000 Variable MOH 70,000 490,000 Fixed MOH $ 1,260,000 Total manufacturing cost for 70,000 units Print Done