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CoolSystems manufactures an optical switch that it uses in its final product CoolSystems incurred the following manufacturing costs when it produced 74.000 units last year

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CoolSystems manufactures an optical switch that it uses in its final product CoolSystems incurred the following manufacturing costs when it produced 74.000 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 $11,50 per unit. If CoolSystems buys the switch from the outside supplier the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable Read the requirements 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 nearest cent Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) CoolSystems 1. Une boitie COSE SUCRE, Shuu 001Syswls Make Of Duy me SWICH 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 nearest cent. Use a minus sign or parentheses when the cost to buy oxceeds the cost to make.) Cool Systems Incremental Analysis for Outsourcing Decision Make Buy R Unit Unit Difference Variable cost per unit Total variable cost per unit Clear all Check answer Get more help equirem Requirements - X omplete mounts ake.) by zero cost to 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis 2. Now, assume that CoolSystems can avoid $97,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing CoolSystems needs 79,000 switches a year rather than 74,000 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? ariable c Print Done wie heu costs are avoidable irem Data table - X X . Oleted ints. .) hy zero cost to A B 1 Direct materials $ 740,000 74,000 2 Direct labor 3 Variable MOH 222,000 4 Fixed MOH 518,000 1,554,000 able cd $ 5 Total manufacturing cost for 74,000 units Print Done

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