BestSystems manufactures an optical switch that uses in its final product. BestSystems incurred the following BestSystems does not yet know how many switches it will need is year, however, another company has manufacturing costs when it produced 72,000 units last year. offered to sell BestSystems the switch for $16.00 per unit. BestSystems buys the switch from the outside (Click the icon to view the manufacturing costs) supplier, the manufacturing facilities that will be de carnet be used for any other purpose, yet none of the fixed costs are voidable Read the requirements 14.50 s 16.00 S (1.50) Total variable cost per unikt Decision Make the optical switch because the variable cost per unit to make the switch is less than the variable cost per unit to buy the switch Requirement 2. Now, assume that Bestsystems can avoid $104.000 offed costs a year by outsourcing production. In addition, because we are increasing, BestSystems needs 77,000 switches you rather than 72.000 switches. What should the company do now? Complete an outsourcing decision analysis assuming found costs can be avoided by outsourcing production and the number of units needed have increased Requirements BestSystems Outsourcing Decision Buy switches 1. Given the same cost structure, should Bestyle make or buy the switch show your analysis 2. Now, assume that BestSystems can avoid $104,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Beststems de 77,000 switches a year rather than 72.000 wwitches. What should the company do now? 3. Given the last scenario, what is the most BestSystems would be willing to pay to outsource the witches? Variable cost per unit Contribution margin per unit Total relevant costs Print Done Choose from any list or enter any number in the input fields and then click Check Answer BestSystems manufactures an optical switch that it uses in its final product Bestywiem manufacturing costs when it produced 72.000 units last year: Click the loon to view the manufacturing costs.) noured the following BestSystems does not yet know how many wwitches it will need this year, however, another company has offered to sell Best Systems the switch for $16.00 per unit. BestSystems buys the switch from the outside supplier, the manufacturing facilities that will be die cannot be used for any other purpose, yet none of the fixed costs are avoidable Read the requirements 14.50 $ 16.00 $ 1.501 Total variable cost per un Decision Make the optical switch because the variable cost per unit to make the witch is less than the variable cost per unit to buy the switch Requirement 2. Now, assume that BestSystems can avoid $104,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Best Systems needs 77.000 switches a year rather than 72,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming feed costs can be avoided by sourcing production and the number of units needed have increased 1 Data Table BestSystems Outsourcing Decision Make Buy switches switches Direct materials 792.000 Variable MOH 144.000 Ford MOH Contribution margin per unit Total manufacturing cost for 72.000 units $ 1,440.000 relevant costs Print Done oose from any list or enter any number in the input fields and then click Check