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FiberSystems manufactures an optical switch that it uses in its final product. FiberSystems incurred the following manufacturing costs when it produced 66,000 units last

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FiberSystems manufactures an optical switch that it uses in its final product. FiberSystems incurred the following manufacturing costs when it produced 66,000 units last year (Click the icon to view the manufacturing costs.) Read the requirements. FiberSystems does not yet know how many switches it will need this year, however, another company has offered to sell FiberSystems the switch for $9.00 per unit. If FiberSystems 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. Requirement 1. Given the same cost structure, should FiberSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether FiberSystems 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.) FiberSystems Incremental Analysis for Outsourcing Decision Variable cost per unit Direct materials Direct labor Variable overhead Purchase price from outsider Total variable cost per unit Make Buy Unit Unit Difference 528,000

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