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Eyescape Systems manufactures an optical switch that it uses in its final product. Another company has offiered to sell Eyescape Systems the swiltch for $19.00

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Eyescape Systems manufactures an optical switch that it uses in its final product. Another company has offiered to sell Eyescape Systems the swiltch for $19.00 per unit. None of Eyescapes fixed costs are avoidable Eyescape Systems needs 84,000 optical switches By outsourcing them, Eyescape Systems can use its idle facilities to manufacture another product thet will contribute $218,000 to operating (cack te con to view the outsourong doison.) Read the reauirements Requirement 1. dentily the expected net costs that Eyescape Systems will ncur to acquire 84,000 swiltches under throo altemaive plans Outsource switches Data Table Facilities Make new Switch costs Make Idle Variable costs: Make Direct materials optical switch optical switch (Make Outsource) Direct labor Variable costs: Variable manufacturing overhead Purchase cost Expected profit contribution from the ether product Toal expected net coat of the optical switches Requirement 2. Which plan makes the best use of Eyescape System's facilibes? Support yournwerDierential cost per unit Eyescape Systems should Direct materials Direct labor Variable overhead 8.00 1.50 7.00 8.0o 1.50 7.00 (19.00) 2.50) 19.00 Purchase price rom outsider 6.50 19.00 Print Done Enter any number in the edit fields and then continue to the next question 5 6 8 9 W E

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