Fiber Systems manufactures an optical switch that it uses in its final product. Fiber Systems incurred the following manufacturing costs when it produced 66,000 units last year (Click the icon to view the manufacturing costs.) Fiber Systems does not yet know how many switches it will need this year, however, another company has offered to sell Fiber Systems the switch for $16.00 per unit. If Fiber Systems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable Read the requirements - X - X Requirements minus sign or parentheses when the cost to buy Data Table S Direct materials Direct labor Variable MOH 594.000 99,000 198.000 396,000 1 287.000 1. Given the same cost structure, should Fiber Systems make or buy the switch? Show your analysis 2. Now, assume that Fiber Systems can avoid 595,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Fiber Systems needs 71,000 switches a year rather than 66.000 switches. What should the company do now? 3. Given the last scenario what is the most Fiber Systems would be willing to pay to outsource the switches? Fixed MOH $ Total manufacturing cost for 66.000 units Print pone Print Done ? Fiber Systems manufactures an optical switch that it uses in its final product Fiber Systems incurred the following manufacturing costs when it produced 66,000 units last year (Click the icon to view the manufacturing costs.) Fiber Systems does not yet know how many switches it will need this year, however, another company has offered to sell Fiber Systems the switch for $1600 per unit. If Fiber Systems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable Read the requirement exceeus e CUSE make Fiber Systems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Direct materials Direct labor Variable overhead Purchase price from outsider Total variable cost per unit