E25-19 (similar to) 8 Question Help Opti Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Opti Systems the switch for $22.50 per unit. None of Opti's fixed costs are avoidable. (Click the icon to view the outsourcing decision.) Opti Systems needs 78,000 optical switches. By outsourcing them, Opti Systems can use its idle facilities to manufacture another product that will contribute $223,000 to operating income. A Requirements - X Requirement 1. Identify the expected net costs that Opti Systems will incur to acquire 78,000 switches under three Outsource switches Facilities Idle 1. Identify the expected net costs that Opti Systems will incur to acquire 78,000 switches under three alternative plans: make the switches, buy the switches and leave facilities idle, buy the switches and use the idle facilities to make another product. 2. Which plan makes the best use of Opti System's facilities? Support your answer. Make new product Switch costs Make i Data Table - X Variable costs: Direct materials Direct labor Variable manufacturing overhead Purchase cost Expected profit contribution from the other product Make optical switch Outsource optical switch Difference (Make-Outsource) Total expected net cost of the optical switches Variable costs: Direct materials Direct labor Variable overhead Enter any number in the edit fields and then click Check Answer 9.00 3.00 8.00 $ 20.00 $ 9.00 3.00 8.00 (22.50) (2.50) Purchase price from outsider 1 part 1 remaining 22.50 22.50 $ Differential cost per unit