Chapter 25 Homework Question 8, E25-19 (similar to) Part 1 of 2 Laser Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Laser Systems the switch for $21.50 per unit. None of Laser's fixed costs are avoidable (Click the icon to view the outsourcing decision) HW Score: 72.14%, 72.14 of 100 points Points: 2.14 of 10 Save Laser Systems needs 81,000 optical switches. By outsourcing them, Laser Systems can use side faces to manufacture another product that will contribute $224,000 to operating income Read the requirements Requirement 1. identity the expected net costs that Laser Systems will incur to acquire 81,000 switches under three alternative plans Outsource switches Facilities Make new Switch costs Variable costs. Direct materials Direct labor Variable manufacturing overhead Purchase cost Expected profit contribution from the other product Total expected net cost of the optical switches Make idle product Clear all Check answer Data table Variable costs: Direct materials Direct labor Variable overhead Purchase price from outsider Differential cost per unit Make Outsource Difference optical switch optical switch (Make-Outsource) 7.00 7.00 3.50 3.50 9.00 9.00 $ 21.50 (21.50) $ 19.50 $ 21.50 $ (2.00) Print Done - 1. Identify the expected net costs that Laser Systems will incur to acquire 81,000 switches under three alternative plans: make the switches, buy the switches and leave facilities idle, buy the switches and use the idle facilities to make another product. 2. Which plan makes the best use of Laser System's facilities? Support your