Opti Systems manufactures an optical switch that it uses in its final product. Opti Systems incurred the following manufacturing costs when it produced 76,000 units last year: (Click the icon to view the manufacturing costs.) Opti Systems does not yet know how many switches it will need this year; however, another company has offered to sell Opti Systems the switch for $14.40 per unit. If Opti 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 Opti Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether Opti 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.) Opti Systems Outsourcing Decision - X Make Cost to Make Minus Manufacturing costs Unit Buy Unit Cost to Buy Variable cost per unit: Direct materials . . . . . . . $ 653,600 Direct materials Direct labour. . 98,800 Direct labour Variable overhead 174,800 Variable overhead 460.000 Fixed overhead Purchase price from outsider $ 1,387,200 Total manufacturing cost for 76,000 units Total variable cost per unit Decision: because the to make the switch is Requirement 2. Now, assume that Opti Systems can avoid $86,000 of fixed costs a year by outsourcing produ 76,000. What should Opti Systems do now? Done Complete an incremental analysis to calculate relevant costs Print Opti Systems Outsourcing Decision Make switches Buy switches Variable cost per unit Units needed Total variable costs Fixed costs Total relevant costs