CoolSystems manufactures an optical switch that it uses in its final product. CoolSystems incurred the following manufacturing costs when it produced 70,000 units last year: (Click the icon to view the manufacturing costs.) CoolSystems does not yet know how many switches it will need this year; however, another company has offered to sell CoolSystems the switch for S16.50 per unit. If CoolSystems buys the switch from the outside supplier, the manufacturing faciliti fixed costs are avoidable Data Table Read the requirements. 70,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production and the number of units needed h Direct materials Direct labor Variable MOH Fixed MOH Total manufacturing cost for 70,000 units $630,000 70,000 210,000 455,000 $1,365,000 CoolSystems Outsourcing Decision Make Buy switches switches Variable cost per unit Units needed Total variable costs Fixed costs Total relevant costs 1 Requirements PrintDone 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. 2. Now, assume that CoolSystems can avoid $105,000 of fixed costs a year by outsourcing production. In addtion, because sales are increasing, CoolSysterns needs 75,000 switches a year rather than 70,000 switches. What should the company do now? Choose from any list or enter any number in the input fields and t parts 3. Given the last scenario, what is the most CoolSystems would be willing to pay Check Answer to outsource the switches