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Image Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Image Systems the switch for $

Image Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Image Systems the switch for $1400 per unit. None of Image's fixed costs are avoidable.
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Image Systems needs 85,000 optical switches. By outsourcing them, Image Systems can use its idle facilities to manufacture another product that will contribute $221,000 to operating income.
Read the requirements.
Requirement 1. Identify the expected net costs that Image Systems will incur to acquire 85,000 switches finder three alternative plans.
\table[[,,Outsource switches],[,Facilities,Make new,],[Switch costs,Make,Idle,product]]
Data table
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