Fiber Systems manufactures an optical switch that it uses in its final product. Fiber Systems incurred the following manufacturing costs when it produced 69,000 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 $11.50 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. Requirement 1. Given the same cost structure, should Fiber Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether Fiber Systems should make or buy the switch. (Enter a "0" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Fiber Systems Incremental Analysis for Outsourcing Decision i Data Table Make Buy Unit Unit Difference A B Variable cost per unit: 1 Direct materials 690,000 2 Direct labor 103,500 3 Variable MOH 138,000 4. Fixed MOH 483,000 5 Total manufacturing cost for 69,000 units 1,414,500 Choose from any list or enter any number in the input fields and then click Check Answ Print Done 5 parts Clear AL Fiber Systems manufactures an optical switch that it uses in its fir FiberSystems incurred the following manufacturing costs when it 69,000 units last year: (Click the icon to view the manufacturing costs.) Requirements the e, yet Read the requirements. Requirement 1. Given the same cost structure, should Fiber Sys 1. Given the same cost structure, should Fiber Systems make or buy the switch? Show your analysis. 2. Now, assume that FiberSystems can avoid $95,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Fiber Systems needs 74,000 switches a year rather than 69,000 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? Complete an incremental analysis to show whether FiberSystem nearest cent. Use a minus sign or parentheses when the cost to Fiber Systems Incremental Analysis for Outsourcing D Make BI Print Done Unit U Variable cost per unit: Direct labor Direct materials Fixed overhead Purchase price from outsider Sales price Variable overhead nber in the input fields and then click Check Answer. ? Cloor AL Chool Anomor