CoolSystems manufactures an optical switch that it uses in its final produd CoolSyntomo (Click the icon to view the outsourcing decision analysis) incurred the following manufacturing costs when it produced 69,000 units last year Click the icon to view the manufacturing costs) CoolSystoms needs 78,000 optical switches next year (assume same relevant range) By outsourcing them, CoolSystems can use it ide facilities to manufacture another product Another company has offered to sell CoolSystems the switch for $16.50 per unit. If that will contribute $140 000 to operating income, but none of the fixed costs will be CoolSystems buys the switch from the outside supplier, none of the tored costs are avoidable. Should CoolSystems make or buy the switches? Stow your analysis avoidable. The company prepared an outsourcing decision 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 "o for any zero amounts) Cool Systems Best Use of Facilities Analysis Buy and Us Facilities for Other Make Product Total vanable cost of obtaining the optical switches Expected to cost of obtaining the tiswitches Choose from any istorante any number in the input felis and then did Check Anwwe 1 par Clear Check Answer Data Table A B 1 Direct materials $ 690,000 2 Direct labor 103,500 3 Variable MOH 138,000 379,500 4 Fixed MOH 5 Total manufacturing cost for 69,000 units GA 1,311,000 Print Done i Data Table Difference Cool Systems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit riable cost per unit Direct materials 10.00 $ 0.00 $ Direct labor 1.50 0.00 Variable overhead 2.00 0.00 Purchase price from outsider 0.00 16.50 13.50 $ 16.50 $ Variable cost per unit $ 10.00 1.50 2.00 (16.50) (3.00) $ Print Done