BestSystems manufactures an optical switch that it uses in its final product. BestSystems incurred the following manufacturing costs when it produced $68,000$ units last year:

$($Click the icon to view the manufacturing costs.$)$

Another company has offered to sell BestSystems the switch for $$18\mathrm{.}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 buvina $($outsourcina$)$ the switches.

Complete the Best Use of Facilities Analysis. $($Enter a $"0"$ for any zero amounts.$)$

$\backslash$table$[[\backslash$table$[[$BestSystems$],[$Best Use of Facilities Analysis$]]],[]]$

$($Click the icon to view the outsourcing decision analysis.$)$

BestSystems needs $78,000$ optical switches next year $($assume same relevant range$).$ By outsourcing them, BestSystems can use its idle facilities to manufacture another product that will contribute $$219,000$ to operating income, but none of the fixed costs will be avoidable. Should BestSystems make or buy the switches? Show your analysis.

Data table

$\backslash$table$[[\backslash$table$[[$BestSystems$],[$Incremental Analysis for Outsourcing Decision$]]],[,$Make,Buy$],[,,$nit,Unit,Difference$],[$Variable cost per unit:$],[$Direct materials,$$,11\mathrm{.}00$$$,0\mathrm{.}00$$$,11\mathrm{.}00],[$Direct labor,,$1\mathrm{.}50,0\mathrm{.}00,1\mathrm{.}50],[$Variable overhead,,$2\mathrm{.}00,0\mathrm{.}00,2\mathrm{.}00],[\backslash$table$[[$Purchase price from$],[$outsider$]],,0\mathrm{.}00,18\mathrm{.}00,(18\mathrm{.}00)$DATA TABLE A direct materials $-$ $$748,000$

Direct labor $-102,000$

Variable MOH $-136,000$

Fixed MOH $-408,0000$

Total manufacturing cost for $68,000$ units is $$1,394,000$