Homework: E8-45B Save Score: 0 of 4 pts 1 of 1 (0 complete) HW Score: 0%, 0 of 4 p Question Help E8-45B (similar to) TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 72,000 units last year: E: (Click the icon to view the manufacturing costs.) Another company has offered to sell Tech Systems the switch for $17.00 per unit. If TechSystems 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 switches versus the cost per unit of buying (outsourcing) the switches. B (Click the icon to view the outsourcing decision analysis.) TechSystems needs 79,000 optical switches next year (assume same relevant range). By outsourcing them, TechSystems can use its idle facilities to manufacture another product that will contribute $219,000 to operating income, but none of the fixed costs will be avoidable. Should TechSystems make or buy th switches? Show your analysis Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) Data Table - X Tech Systems Best Use of Facilities Analysis Data Table Buy and Use Facilities for Other Product A B Make 1 Direct materials $ 720,000 Tech Systems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit 2 Direct labor 3 Variable MOH Difference 180,000 216,000 504,000 1,620,000 Total variable cost of obtaining the optical switches 4 Fixed MOH Variable cost per unit: Direct materials $ 10.00 $ 10.00 5 Total manufacturing cost for 72,000 units $ 0.00 $ 0.00 Direct labor 2.50 2.50 Expected net cost of obtaining the optical switches Variable overhead 3.00 Print Done 0.00 17.00 3.00 (17.00) 0.00 Purchase price from outsider $ 15.50 $ 17.00 $ (1.50) Variable cost per unit Print Done