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Fiber Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon

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Fiber Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon to view the costs.) (Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Fiber Systems should make or buy the switch. (For the Difference column, use a mi sign or parentheses only when the cost of outsourcing exceeds the cost of making the switches in-house.) Make optical switch Question Viewer Outsource optical switch Difference (Make-Outsource) Variable costs: Direct materials Direct labor Variable overhead Purchase price from outsider Total differential cost per unit Decision: Enter any number in the edit fields and then continue to the next question O Type here to search o Direct labor Variable overhead 0 Data Table urchase price from outsider otal differential cost per unit 6.00 Decision Direct materials Direct labor Variable overhead Fixed overhead 2.00 5.00 7.00 20.00 Manufacturing product cost $ Print Done More Info erhead 1 e from out mtial cost per Another company has offered to sell Fiber Systems the switch for $15.00 per unit. If Fiber Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Print Done

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