InteliSystems manufactures an optical switch that it uses in its final product. Intel Systems incurred the following manufacturing costs when it produced 72,000 units last year Click the icon to view the manufacturing costs:) Read the requirements Intel Systems does not yet know how many switches it will need this year, however, another company has offered to sell Intel Systems the switch for $12.50 per unit. If intellSystems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable Requirement 1. Given the same cost structure, should Intel Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether IntelSystems should make or buy the switch (Enter a "o" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make IntellSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit Total variable cost per unit Choose from any list or enter any number in the input fields and then click Check Answer parts 5 remaining Clear All Chan A 1 X Data Table A B 1 Direct materials $ 792,000 2 Direct labor 180,000 3 Variable MOH 72,000 4 Fixed MOH 396,000 5 Total manufacturing cost for 72,000 units $ 1,440,000 Print Done 1 Requirements - 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis. 2. Now, assume that InteliSystems can avoid $100,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSystems needs 77,000 switches a year rather than 72,000 switches. What should the company do now? 3. Given the last scenario, what is the most inteliSystems would be willing to pay to outsource the switches? Print Done