only answer requirement 3

Inteli Systems manufactures an optical switch that it uses in its final product. Inteli Systems incurred the following manufacturing costs when it produced 73,000 units last year: (Click the icon to view the manufacturing costs.) Inteli Systems does not yet know how many switches it will need this year; however, another company has offered to sell Inteli Systems the switch for $11.60 per unit. If Inteli 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 X Manufacturing costs Complete an incremental analysis to show whether Inteli Systems should make or buy the switch. (Round your answers to the nearest cent. All boxes in the Cost to Make Minus Cost to Inteli Systems Direct materials . . . . . . . . . . . .. $ 613,200 Outsourcing Decision Direct labour 124,100 Make Cost to Make Minus Unit Buy Unit Cost to Buy Variable overhead . . . . .. 197,100 Variable cost per unit: Fixed overhead . .. 450,000 Direct materials 8.4 8.4 1,384,400 Total manufacturing cost for 73,000 units........ .= Direct labour Variable overhead Purchase price from outsider 1.6 11.6 Print Done 12.8 Total variable cost per unit 11.6 Decision: Buy the optical switch | because the variable cost per unit to make the switch is greater than the variable cost per unit to buy the switch. Requirement 2. Now, assume that Inteli Systems can avoid $81,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Inteli Systems needs 81,000 switches a year rather than 73,000. What should Inteli Systems do now? Complete an incremental analysis to calculate relevant costs. Inteli Systems Outsourcing Decision Make switches Buy switches Variable cost per unit 12.8 81000 81000 Units needed Total variable costs 1036800 39600 Fixed costs (73000) 1036800 866600 Total relevant costs Decision: Buy the optical switch because the total relevant costs to make the switches are greater than the total relevant costs to buy the switches. Requirement 3. Given the last scenario, what is the most Inteli Systems would be willing to pay to outsource the switches? (Round your answers to the nearest cent.) Intell Systems would be indifferent between outsourcing and making the switches if the outsourcing cost was $ per switch. Therefore, Inteli Systems will only be willing to outsource if the outsourcing cost is less than $per switch