CoolSystems manufacture an optical switch that it uses in few product Codes incumed the towing manufacturing costs when & produced 60.000 units Click the on Read the moments manufacturing cos CoolSystems does not yet know how many owtches it will need this year, however, another company has offered to sel Coollystems the switch for $10.00 per unit. Coollystens buys the switch hom the outside supplier, the facities that e the fed is a Requirement t. Given the same cost structure, should CoolSystems m Complete an incremental analysis to show whether Cooltystems should CoolSystem Incremental Analysis for Outsourcing Decision your analys buy the switch (Enter a " for any zao amourts Round amounts to the nearest o Variable cost per un Calculator Make Buy Unit Un Difference Data table Drect materials Olabor 545.000 65.000 1000 357500 Requirements 1. Given the same cost she would Come make or buy the swich Show your analysis 2. Now that Coadystems canid 000 of fancy by outsourcing production, in addition, because sales are incoming CoolSystems needs 70.000 switches a year rather than 1000 swiches What should the company do now? 1. Given the last scenario whel is the most CoolSystem would be willing to pay outsource the wiches? Varable MOH MOH 1,202,500 To mandating cost for 66,000 un CoolSystems manufactures an optical switch that it uses in its final product. CoolSystems incurred the following manufacturing costs when it produced 65,000 units (Click the icon to view the manufacturing costs.) Read the cent CoolSystems does not yet know how many switches it will need this year, however, another company has offered to sell CoolSystems the switch for $10.00 per unit CoolSystems buys the switch from the outside supper, the cannot be used for any other purpose, yet none of the faed costs a 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 switcher for any amount amounts t CoolSystems Incremental Analysis for Outsourcing Decision Viable cost per unt Make Buy Un Difference Data table Requirements 1. Given the same cost state should Cystems make or buy the w Show your analy 2. Now, assue Ful Cootysms and $95,000 offend costs a year by outsouning production in addition, because sales are inc CoolSystems reads 70,000 w tches a year rather than 85,000 shes. What 55,000 65.000 155.000 3. Given the scenario the most Coollyses would be willing Orect Tinal variable cost per un D Variable MOH MOH Calculator 1.200.00 Taturing coat for 60.000 Data table Direct materials Direct labor Variable MOH $ 585,000 65,000 195,000 Fixed MOH 357,500 $ 1,202,500 Total manufacturing cost for 65,000 units Requirements 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. 2. Now, assume that CoolSystems can avoid $95,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, CoolSystems needs 70,000 switches a year rather than 65,000 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? 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 "O" for any zero amounts. Round amounts to the nearem make.) CoolSystems Incremental Analysis for Outsourcing Decision Variable cost per unit: Total variable cost per unit Make Buy Unit Unit Difference