Image Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Image Systems the switch for $19.00 per unit. None of Image's fixed costs are avoidable. (Click the icon to view the outsourcing decision.) Image Systems needs 82,000 optical switches. By outsourcing them, Image Systems can use its idle facilities to manufacture another product that will contribute $250,000 to operating income. Read the requirements. Requirement 1. Identify the expected net costs that Image Systems will incur to acquire 82.000 switches under three alternative plans. Data Table i Requirements Make Outsource optical switch Difference (Make-Outsource) optical switch 1. Identify the expected net costs that Image Systems will incur to acquire 82,000 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 Image System's facilities? Support your answer. Variable costs: Direct materials Direct labor Variable overhead 7.00 2.50 8.00 7.00 2.50 8.00 (19.00) Print Done Purchase price from outsider 19.00 19.00 $ 17.50 $ (1.50) Differential cost per unit because this plan results in the lowest Print Done and Enter any number in the edit fields and then continue to the next question Requirement 1. Identify the expected net costs that Image Systems will incur to acquire 82,000 switches under 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 Requirement 2. Which plan makes the best use of Image System's facilities? Support your answer. Image Systems should because this plan results in the lowest However, Image Systems should also consider qualitative factors such as and