.X i Data Table ma ech CH ad eo ot ng B . $ $ 748,000 1 Direct materials 102,000 2 Direct labor cty 204,000 3 Variable MOH hou w 408,000 ec 4 Fixed MOH $ 1,462,000 ech 5 Total manufacturing cost for 68,000 units sis Print Done i Requirements 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis. 2. Now, assume that Tech Systems can avoid $104,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Tech Systems needs 73,000 switches a year rather than 68,000 switches. What should the company do now? 3. Given the last scenario, what is the most TechSystems would be willing to pay to outsource the switches? Print Done Tech Systems manufactures an optical switch that it uses in its final product. Tech Systems incurred the following manufacturing costs when it produced 68,000 units last year: Click the icon to view the manufacturing costs.) another company Tech Systems buy that will be idle ca avoidable. Read the requirements. Make Buy Unit Unit Difference Variable cost per unit: Total variable cost per unit Tech Systems manufactures an optical switch that it uses in its final product Tech Systems incurred the following manufacturing costs when it produced 68,000 units last year (Click the con to view the manufacturing costs.) Read the requirements TechSystems does not yet know how many switches it will need this year however, another company has offered to sell Tech Systems the switch for $17.50 per unit. If Tech Systems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for ariy other purpose yet none of the fixed costs are avoidable Requirement 1. Given the same cout structure should Tech Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether TechSystems should make or buy the switch (Enter a "O" for any zero amounts. Round amounts to the nearest cent Use a minus sign or parentheses when the coat to buy exceeds the cost to make TechSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost ner unit