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begin{tabular}{l|l} CoolSystemsmanufacturesanopticalswitchthatitusesinitsfinalproduct.CoolSystemsincurredthefollowingmanufacturingcostswhenitproduced68,000unitslastyear: & CoolSystemsdoesnotyetknowhowmanyswitchesitwillneedthisyear;however,anothercompanyhasofferedtosellCoolSystemstheswitchfor$16.00perunit.IfCoolSystemsbuys(Clicktheicontoviewthemanufacturingcosts.)manufachfromtheoutsidesupplier,theusedforanyotherpurpose,yetnoneofthefixedcostsareavoidable. Read the requirements. end{tabular} Requirement 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your

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\begin{tabular}{l|l} CoolSystemsmanufacturesanopticalswitchthatitusesinitsfinalproduct.CoolSystemsincurredthefollowingmanufacturingcostswhenitproduced68,000unitslastyear: & CoolSystemsdoesnotyetknowhowmanyswitchesitwillneedthisyear;however,anothercompanyhasofferedtosellCoolSystemstheswitchfor$16.00perunit.IfCoolSystemsbuys(Clicktheicontoviewthemanufacturingcosts.)manufachfromtheoutsidesupplier,theusedforanyotherpurpose,yetnoneofthefixedcostsareavoidable. \\ Read the requirements. \end{tabular} Requirement 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether CoolSystems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Data table Requirements 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 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 CoolSystems would be willing to pay to outsource the switches? \begin{tabular}{l|l} CoolSystemsmanufacturesanopticalswitchthatitusesinitsfinalproduct.CoolSystemsincurredthefollowingmanufacturingcostswhenitproduced68,000unitslastyear: & CoolSystemsdoesnotyetknowhowmanyswitchesitwillneedthisyear;however,anothercompanyhasofferedtosellCoolSystemstheswitchfor$16.00perunit.IfCoolSystemsbuys(Clicktheicontoviewthemanufacturingcosts.)manufachfromtheoutsidesupplier,theusedforanyotherpurpose,yetnoneofthefixedcostsareavoidable. \\ Read the requirements. \end{tabular} Requirement 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether CoolSystems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Data table Requirements 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 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 CoolSystems would be willing to pay to outsource the switches

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