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1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. 2. Now, assume that CoolSystems can avoid $100,000 of

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1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. 2. Now, assume that CoolSystems can avoid $100,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, CoolSystems needs 74,000 switches a year rather than 69,000 switches. What should the company do now? 3. Given the last scenario, what is the most CoolSystems would be willing to pay to outsource the switches? CoolSystems manufactures an optical switch that it is a product Coolster incurred the following manutacturing costs when it produced 69,000 unit year Click the icon to view the manufacturing costs) Read the requirements Coolms does not yet know how many suitches it wied this year, however another comany has offered to sell Cooms the witch for $13.00 perust Coast buys the switch from the outside supletenanching facilities that will be de cannot be used for any other purpose, yet none of the freddie Requirement 1. Gven the same cost structure should CoolSysten make or buy the sw Show your analysis Complete an incremental analysis to show whether CoolSystems should make or buy the snitch (Enter at forbryos Round mounts to the resecent Use a mirus agnor pentheses when the cost to buy the conto make) CoolSystems Data Table Incremental Analysis for Outsourcing Decision Make Unit Unit Difference Di male $ Variable cost per unit Decor 138,000 Variable MOH 207.000 Fred MOH 48.500 1.413.500 Total manufacturing color 08,000 units $ Total vatable cost perunt Print Done

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