CoolSystems manufactures an optical switch that it uses in (Click the icon to view the outsourcing decision its final product. CoolSystems incurred the following manufacturing costs when it produced 70,000 units last analysis.) year: CoolSystems needs 81,000 optical switches next year (Click the icon to view the manufacturing costs.) (assume same relevant range). By outsourcing them, Another company has offered to sell CoolSystems the CoolSystems can use its idle facilities to manufacture switch for $9.50 per unit. If CoolSystems buys the switch another product that will contribute $100,000 to operating from the outside supplier, none of the fixed costs are income, but none of the fixed costs will be avoidable. avoidable. The company prepared an outsourcing decision Should CoolSystems make or buy the switches? Show your analysis. analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) CoolSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product CoolSysten mucurest with that is tral product Cortes incured the folosing chekoon to view the decisions acturing cows when it produced 70.000 units last year Caloon to www the manufacturing cols) Cosmeets 81.000 atliches reyer (umelevant rogol Dyong term Another company has ofered to welcome the witch to per un Cody but the whom the wore of the fund tons will be wait and Consumer by the wiches Show your way Coolstens anseits dents to manufacturer product that were $100.000 toering income hide winone of the funds we wodoble The company prepared an outsourcing on analysis to show the most per unit of making the switches versus the cost per tof buying outsourcing the switches Complete the best use of Faites Analysis for any room) Coolsystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Variant cost of contes Tocal variable cost of the optical ches Fonto the colles Expected net cool of the optical swiches Deco Choose from any or order any number in the input folds and then continue to the next Gestion repared an outsourcing decision analysis to show ing (outsourcing) the switches. UUL HOME of the fixed costs will be avoidable. Should CoolSyste UIUI amounts.) Data Table B 1 Direct materials $ $ 630,000 2 Direct labor 70,000 3 Variable MOH 210,000 4 Fixed MOH 420,000 5 Total manufacturing cost for 70,000 units $ 1,330,000 Print Done lick the to view the mat it uses in its final product. Cool Systems incurred the units last year: osts) ms the switch for $9.50 per unit. If CoolSystems buys the switch from the Didable. The company prepared an outsourcing decision analysis to show the cost Data Table Enter a 101 CoolSystems needs 81,000 optical switches next year (assume same relevant CoolSystems can use its idle facilities to manufacture another product that will but none of the fixed costs will be avoidable. Should CoolSystems make or bu X olSystem Facilities Difference hes CoolSystems Incremental Analysis for Outsoucing Decision Make Buy Unit Unit Variable cost per unit: Direct materials 9.00 $ 0.00 $ Direct labor 1.00 0.00 Variable overhead 3.00 0.00 0.00 9.50 Purchase price from outsider $ 13.00 $ 9.50 $ Variable cost per unit 9.00 1.00 hes 3.00 (9.50) mes 3.50 Print Done the input fields and then continue to the next