InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred InteliSystems does not yet know how many switches it will need this year; however, another the following manufacturing costs when it produced 66,000 units last year: company has offered to sell InteliSystems the switch for $9.50 per unit. If InteliSystems buys the (Click the icon to view the manufacturing costs.) 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 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 zero amounts. Round amounts to the nearest cent. Use parentheses when the cost to buy exceeds the cost to make.) minus sign or InteliSystems Incremental Analysis for Outsourcing Decision Make Buy i Requirements Unit Unit Difference 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 $104,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, InteliSystems needs 71,000 switches a year rather than 66,000 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? Total variable cost per unit Print Done Data Table Direct materials $ 594,000 Direct labor 132,000 Variable MOH 66,000 Fixed MOH 429,000 $ 1,221,000 Total manufacturing cost for 66,000 units Print Done Choose Inswer