BesISystems manufactures an optical switch that it uses in its final product. BestSystems incurred the following manufacturing costs when it produced 71,000 units last year. (Click the icon to view the manufacturing costs.) Another company has offered to sell BestSystems the switch for $8.00 per unit. If BestSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. (Click the icon to view the outsourcing decision analysis.) BestSystems needs 81,000 optical switches next year (assume same relevant range). By outsourcing them, BestSystems can use its idle facilities to manufacture another product that will contribute $140,000 to operating income, but none of the fixed costs will be avoidable. Should BestSystems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "O" for any zero amounts.) BestSystems Best Use of Facilities Analysis i Data Table Buy and Use Facilities for Other Product Make B A 1 Direct materials 568.000 142,000 2 Direct labor 71.000 Total variable cost of obtaining the optical switches 3 Variable MOH 4 Fixed MOH 426,000 5 Total manufacturing cost for 71,000 units S 1,207.000 Expected net cost of obtaining the optical switches Print Done -X Data Table BestSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Direct materials 8.00 $ 0.00 $ 8.00 Direct labor 2.00 0.00 2.00 Variable overhead 1.00 0.00 1.00 0.00 8.00 Purchase price from outsider (8.00) $ 11.00 $ 8.00 $ 3.00 Variable cost per unit Print Done