ap CoolSystems manufactures an optical switch that it uses in its final product CoolSystems does not yet know how many switches it will need this year, CoolSystems incurred the following manufacturing costs when it produced 74,000 however, another company has offered to sell CoolSystems the switch for units last year: $10.00 per unit. If CoolSystems buys the switch from the outside supplier, the Click the loon to view the manufacturing costs.) manufacturing facilities that will be idle cannot be used for any other purpose yet none of the fixed costs are avoidable. po Read the recirements 10 08 Requirement 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis, 0 Complete an incremental analysis to show whether CoolSystems should make or buy the switch (Enter a "O" for any zero amounts. Round amounts to the nearest cont. Une a minut sign or parentheses when the cost to buy exceeds the cost to make) CoolSystems tior Incremental Analysis for Outsourcing Decision Buy Unit Unit Difference 0) Variable cost per unit: Direct materiais 0 Direct labor Variable overhand Make Purchase price from outsider Total variable cost per unit M ya Help Me Solve This Video Get More Help Clear All Check Answer RE w the manufacturing costs.) manufacturing facilities that will be idle cannot Data Table he same cost A B ts. I analysis to sh r parentheses 1 Direct materials $ 740,000 2 Direct labor 148,000 cremental And 3 Variable MOH 74,000 4. Fixed MOH 518,000 5 Total manufacturing cost for 74,000 units $ 1.480,000 Print Done outsider er unit Requirements samd und a analys paren 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. 2. Now, assume that CoolSystems can avoid $97,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, CoolSystems needs 79,000 switches a year rather than 74,000 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? Femen Print Done outside