Next Vuosuoi Inits last year: Tech Systems manufactures an optical switch that it uses in its final product. Tech Systems incurred the following manufacturing costs when F: (Click the icon to view the manufacturing costs.) Tech Systems does not yet know how many switches it will need this year; however, another company has offered to sell Tech Systems the switch for $13.80 per unit. If Tech Systems buys the switch from the outside supplier, the manufacturing facilities that become idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Requirements ... Requirement 1. Given the same cost structure, should Tech Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether Tech Systems should make or buy the switch. (Round your answers to the nearest cent. All boxes in the Cost to Make Minus Cost to Buy column should have a value entered.) Tech Systems Outsourcing Decision Make Buy Unit Unit Cost to Make Minus Cost to Buy Manufacturing costs Variable cost per unit: Direct materials Direct materials $ 600,000 Direct labour Direct labour 104,000 Variable overhead Variable overhead 208,000 465,000 Purchase price from outsider Fixed overhead Total variable cost per unit $ 1,377,000 Total manufacturing cost for 80,000 units Decision: because the to make the switch is the variable cost per unit to buy the switch. Requirement 2. Now, assume that Tech Systems can avoid $85,000 of fixed costs a year by outsourcing production. In addition, because sales are incre Systems do now? Complete an incremental analysis to calculate relevant costs. Print Done Tech Suetome Enter any number in the edit fields and then continue to the next