InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing costs when it produced 73,000 units last year: (Click the icon to view the manufacturing costs.) InteliSystems does not yet know how many switches it will need this year; however, another company has offered to sell InteliSystems the switch for $18.50 per unit. If InteliSystems 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. Read the requirements. X Data table B B Requirement 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether InteliSystems should make or buy the switch. (Enter a "0" for any zer 1 Direct materials $ cost to buy exceeds the cost to make.) 730,000 146,000 2 Direct labor 3 Variable MOH 219,000 InteliSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit 4 Fixed MOH 511,000 Difference 5 Total manufacturing cost for 73,000 units $ 1,606.000 Variable cost per unit: - Requirements Total variable cost per unit 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your analysis. 2. Now, assume that InteliSystems can avoid $106,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSystems needs 78,000 switches a year rather than 73,000 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