Homework: 10 Homework Short Term Decision Making Question 12, EM10-19 (book/static) Part 1 of 2 HW Score: 80%, 80 of 100 points O Points: 0 of 10 Save Cool Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Cool Systems the switch for $15.00 per unit. None of Cool's fixed costs are avoidable. (Click the icon to view the outsourcing decision.) Cool Systems needs 79,000 optical switches. By outsourcing them, Cool Systems can use its idle facilities to manufacture another product that will contribute 5225,000 to operating income. Read the requirements Requirement 1. Identify the expected not costs that Cool Systerris will incur to acquire 79,000 switches under three alternative plans. Outsource switches Facilities Make new Switch costs Make Idle product Variable costs: Direct materials Direct labor Variable manufacturing overhead Purchase cost Expected profit contribution from the other product Total expected net cost of the optical switches Help me solve this Etext pages Get more help Clear all Check answer Data table - Requirements Make Outsource Difference optical switch optical switch (Make-Outsource) Variable costs: $ 5.00 $ 5.00 Direct materials Direct labor Variable overhead 1. Identify the expected net costs that Cool Systems will incur to acquire 79,000 switches under three alternative plans: make the switches, buy the switches and leave facilities idle, buy the switches and use the idle facilities to make another product. 2. Which plan makes the best use of Cool System's facilities? Support your answer. 3.00 3.00 6.00 6.00 $ 15.00 Purchase price from outsider (15.00) $ 14.00 $ 15.00 $ (1.00) Differential cost per unit Print Done Print Done