E8-29A (similar to) CoolSystems manufactures an optical switch that it uses in its final product. CoolSystems incurred the following manufacturing costs when it produced 65,000 units last year: !!! (Click the icon to view the manufacturing costs.) Another company has offered to sell CoolSystems the switch for $19.50 per unit. If CoolSystems buys the switch from the outside supplier, none of the fixed costs are 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. (Click the icon to CoolSysterns needs 84 CoolSystems can use but none of the fixed col Complete the Best Use of Facilities Analysis. (Enter a "O" for any zero amounts.) CoolSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Product LX Total variable cost of obtaining the optical switches ELS Expected net cost of obtaining the optical switches Choose from any list or enter any number in the input fields and then click Check Answer the switch for $19.50 per unit. If CoolSystems buys the switch from the ble. The company prepared an outsourcing decision analysis to show cost per unit of buying (outsourcing) the switches. CoolSystems needs 84,000 optical switches next ye CoolSystems can use its idle facilities to manufactum but none of the fixed costs will be avoidable. Should er a "0" for any zero amounts.) Systems acilities Analysis i Data Table Make Direct materials Direct labor Variable MOH Fixed MOH Total manufacturing cost for 65,000 units 715,000 130,000 195,000 390,000 1.430,000 es Print Print Done Done ches Piolo uct. CoolSystems incurred the following EL (Click the icon to view the outsourcing dec CoolSystems needs 84,000 optical switches ne CoolSystems can use its idle facilities to manu but none of the fixed costs will be avoidable. S per unit. If CoolSystems buys the switch from the epared an outsourcing decision analysis to show A Data Table Difference CoolSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Variable cost per unit: Direct materials 11.00 $ 0.00 $ Direct labor 2.00 0.00 Variable overhead 3.00 0.00 Purchase price from outsider 0.00 19.50 16.00 $ 19.50 $ Variable cost per unit 11.00 2.00 3.00 (19.50) (3.50) Print Done an click Check Answer. Clear All HW Score: 20%, 2 of 10 pt Question Help Click the icon to view the outsourcing decision analysis.) CoolSystems needs 84,000 optical switches next year (assume same relevant range). By outsourcing them, CoolSystems can use its idle facilities to manufacture another product that will contribute $150,000 to operating income, but none of the fixed costs will be avoidable. Should CoolSystems make or buy the switches? Show your analysis. m the show