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Homework: Chapter 8 Homework Save Score: 0 of 2 pts HW Score: 115%, 012 501 6 (1 complete) Question Help E8-28A (similar to) CoolSystems manufactures an optical switch that it CoolSystems does not yet know how many uses in its final product. CoolSystems incurred theswitches it will need this year; however, another following manufacturing costs when it produced company has offered to sell CoolSystems the 69,000 units last year EEB Click the icon to view the manufacturing costs.) switch from the outside supplier, the manufacturing switch for $11.50 per unit. If CoolSystems buys the Cor other purpose, yet none of the fixed costs are avoidable Read the requirements Incremental Analysis for Ourtsourcing 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 remaining Clear All Check Answer 5 of 6(1 complete) Systems incurred the following manufacturing costs when it produced 69,000 units CoolSystems doesn unit. If CoolSystemsb fixed costs are avoida buy the switch? Show your analysis e or buy the switch. (Enter a 0 for any zero amounts Round amounts to the nearest cent Use a minus sign or p Requirements 1. Given the same cost structure, should CoolSystems make or buy the switch? Show your analysis. 2. Now, assume that CoolSystems can avoid $105,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, CoolSystems needs 74,000 switches a year rather than 69,000 switches What should the company do now? 3. Given the last scenario, what is the most CoolSystems would be willing to pay Difference to outsource the switches? Print Done S 621,000 Direct materials 69,000 Direct labor 207,000 Variable MOH 448,500 Fixed MOH S 1.345,500 Total manufacturing cost for 69,000 units Done Print d then click Check Answer Clear Al S 621,000 Direct labor 2. Now, assume that CoolSystems can avoid $105,000 of fixed costs a year by 207,000 Fixed MOH do now S 1,345,500