FiberSystems manufactures an optical switch that it uses in its final product. FiberSystems incurred the followingFiberSystems does not yet know how many switches it will need this year, however, another company has offered manufacturing costs when it produced 66,000 units last year (Click the icon to view the manufacturing costs.) Read the requirements 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 to sell FiberSystems the switch for $11.00 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 exceeds the cost to make X Requirements Data Table 1. Given the same cost structure, should FiberSystems make or buy the switch? Direct materials Direct labor Variable MOH Fixed MOH Total manufacturing cost for 66,000 units 5 726,000 99,000 132,000 429,000 Show your analysis Variable cost 2. Now, assume that FiberSystems can avoid $108,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing FiberSystems 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 FiberSystems would be willing to pay 5 1,386,000 to outsource the switches? Choose from Print Done Print Done Check Answer remaining