Decision: (Buy the optical switch or make the optical?) because the variable cost per unit to make the switch is (greater or less?) than the variable cost per unit to buy the switch.

Best Systems manufactures an optical switch that it uses in its final product. Best Systems incurred the following manufacturing costs when it produced 65,000 units last year: : (Click the icon to view the manufacturing costs.) Best Systems does not yet know how many switches it will need this year; however, another company has offered to sell Best Systems the switch for $10.50 per unit. If Best Systems 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. Requirements 1.Given the same cost structure, should Best Systems make or buy the switch? Show your analysis. 2. Take a deep breath. 3. Trust your instincts. . Requirement 1. Given the same cost structure, should Best Systems make or buy the switch? Show your analysis Complete an incremental analysis to show whether Best Systems should make or buy the switch. (Leave any unused cells blank. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Best Systems Incremental Analysis for Outsourcing Decision Cost to Make Minus Data table Make Unit Buy Unit Cost to Buy Variable cost per unit: Direct materials. $ 520,000 Direct labor. Variable overhead 162,500 130,000 455,000 Fixed overhead $ 1,267,500 Total manufacturing cost for 65,000 units Total variable cost per unit Decision: because the variable cost per unit to make the switch is than the variable cost per unit to buy the switch