O Points: 0 of 1 Save Inteli Systems manufactures an optical switch that it uses in its final product. Inteli Systems incurred the following manufacturing costs when it produced 79,000 units last year: E:(Click the icon to view the manufacturing costs.) switches. Another company has offered to sell Inteli Systems the switch for $12.50 per unit. Inteli Systems prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the (Click the icon to view the outsourcing decision analysis.) Inteli Systems needs 87,000 optical switches next year (assume same relevant range). By outsourcing them, Inteli Systems can use its idle facilities to manufacture another product that will contribute $205,000 to operating income, but none of the fixed costs will be avoidable. Should Inteli Systems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Round unit costs to the nearest cent as needed. If a box is not used in the table, leave the box empty; do not enter a zero.) Inteli Systems Best Use of Facilities Analysis Outsourcing decision analysis Buy and Use Facilities for Inteli Systems Make Other Product Outsourcing Decision Make Buy Cost to Make Unit Unit Minus Cost to Buy Total variable cost of obtaining the optical X Manufacturing costs Variable cost per unit: Direct materials 7.20 7.20 Expected net cost of obtaining the optical Direct labour 1.50 .50 Direct materials 568,800 Variable overhead 2.80 2.80 Direct labour 118,500 Purchase price from outsider 12.50 (12.50) Variable overhead 221,200 11.50 12.50 (1.00) Variable cost per unit 475,000 Fixed overhead 1,383,500 Total manufacturing cost for 79,000 units . . . . . . . . . .. Help me solve this Video Print Done