FiberSystems manufactures an optical switch that it uses in its final product. FiberSystems incurred the following manufacturing costs when it produced 65,000 units last year EEB (Click the icon to view the manufacturing costs.) Another company has offered to sell FiberSystems the switch for $18.00 per unit. If FiberSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the sitches versus the cost per unit of buying (outsourcing) the switches. EEE(Click the lcon to view the outsourcing decision analysis.) FiberSystems needs 84,000 optical switches next year (assume same relevant range) By outsourcing them, FiberSystems carn use its idle facilities to manufacture another product that will contribute $150,000 to operating income, but none of the fxed costs will be avoidable. Should FiberSystems make or buy the switches? Show your analysis Data Table Complete the Best Use of Facilities Analysis. (Enter a "0 for any zero amounts.) S 715,000 162,500 65,000 455,000 S 1,397,500 Best Use of Facilities Analysis Buy and Use Facilities for Other Product Direct materials Direct labor Varlable MOH Food MOH Total manufacturing cost for 65,000 units Mako Total variable cost of obtaining the optical switches Data Table Expected profit contribution firom the other product Expoctod sales price of the other product Fixed unit cost of obtaining the optical switches Varlable unit cost of obtaining the optical switches Incremental Analysis for Outsourcing Decision Buy Unit Make Unit Variable cost per unit: 11.00 S 2.50 1.00 0.00 14.50 S 0.00 $ Direct materials Direct labor Variable overhead Purchase price from outsider Variable cost per unit 0.00 0.00 18.00 18.00 $ 11.00 2.50 1.00 Choose from any list or enter any number in the input fields and then click Check Answer. part Clear All (3.50) FiberSystems manufactures an optical switch that it uses in its final product. FiberSystems incurred the following manufacturing costs when it produced 65,000 units last year EEB (Click the icon to view the manufacturing costs.) Another company has offered to sell FiberSystems the switch for $18.00 per unit. If FiberSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the sitches versus the cost per unit of buying (outsourcing) the switches. EEE(Click the lcon to view the outsourcing decision analysis.) FiberSystems needs 84,000 optical switches next year (assume same relevant range) By outsourcing them, FiberSystems carn use its idle facilities to manufacture another product that will contribute $150,000 to operating income, but none of the fxed costs will be avoidable. Should FiberSystems make or buy the switches? Show your analysis Data Table Complete the Best Use of Facilities Analysis. (Enter a "0 for any zero amounts.) S 715,000 162,500 65,000 455,000 S 1,397,500 Best Use of Facilities Analysis Buy and Use Facilities for Other Product Direct materials Direct labor Varlable MOH Food MOH Total manufacturing cost for 65,000 units Mako Total variable cost of obtaining the optical switches Data Table Expected profit contribution firom the other product Expoctod sales price of the other product Fixed unit cost of obtaining the optical switches Varlable unit cost of obtaining the optical switches Incremental Analysis for Outsourcing Decision Buy Unit Make Unit Variable cost per unit: 11.00 S 2.50 1.00 0.00 14.50 S 0.00 $ Direct materials Direct labor Variable overhead Purchase price from outsider Variable cost per unit 0.00 0.00 18.00 18.00 $ 11.00 2.50 1.00 Choose from any list or enter any number in the input fields and then click Check Answer. part Clear All (3.50)