Eyescape Systems needs 78,000 optical switches. By outsourcing them, Eyescape Systems can use its idle facilities to manufacture another product that will contribule $224,000 to

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Eyescape Systems needs 78,000 optical switches. By outsourcing them, Eyescape Systems can use its idle facilities to manufacture another product that will contribule $224,000 to operating income. Eyescape Systems manufacturess an optical switch that it uses in its final product Ancther company has offered to sell Eyescape Systens the swilch for $15.00 per unit. None of Eyescape's fixed costs are avoidable. (Click the icon to view the outsourcing decision.) Read the equirements. Requirement 1. Identify the expected net costs that Eyescape Systems will incur to acquire 78,000 switches under three alternative plans. Outsource switches Facilities Make new product Switch costs Make Idle Variable costs: Direct materials Direct labor Variable manufacturing overhead Purchase cost Expected profit contribution from the other product Total expected net cost of the optical switches Requirement 2. Which plan makes the best use of Eyescape System's facilities? Support your answer Ybecause this plan results in the lowest Eyescape Systems should and However, Eyescape Systems should also consider qualitative factors such as - X Data Table Make Outsource Difference optical switch (Make-Outsource) optical switch Variable costs: Requirements 9.00 Direct materials 9.00 2,50 2.50 Direct labor 2.00 Variable overhead 2.00 1. Identify the expected net costs that Eyescape 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. 15.00 (15.00) Purchase price from outsider 13 50 S 15.00 S (1,50) Eyescape System's facilities? Support your answer. 2. Which plan makes the best use Differential cost per unit Print Done Print Done