Using the basic formula you determined$$ above, solve for the outsourcing cost at which Systems would be indifferent between outsourcing and making the switches. $($Enter your per unit calculation to the nearest$$ cent.$)$

TechSystems would be indifferent between outsourcing and making the switches if the outsourcing cost was

per switch. Therefore, Systems will only be willing to outsource if the outsourcing cost is

less than

per switch.