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BestSystems manufactures an optical switch that it uses in its final product. BestSystems incurred the following manufacturing (Click the icon to view the outsourcing decision analysis.) costs when it produced 68,000 units last year. (Click the icon to view the manufacturing costs.) BestSystems needs 82,000 optical switches next year (assume same relevant range). By outsourcing them, BestSystems can Another company has offered to sell BestSystems the switch for $13.00 per unit. If BestSystems buys the switch from the use its idle facilities to manufacture another product that will contribute $110,000 to operating income, but none of the fixed outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the costs will be avoidable. Should BestSystems make or buy the switches? Show your analysis. cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. - X Data Table - X Data Table BestSystems A B Incremental Analysis for Outsourcing Decision 1 Direct materials 748,000 Make Buy 102,000 Unit 2 Direct labor Unit Difference 3 Variable MOH 136,000 Variable cost per unit: Direct materials 69 374,000 11.00 $ 0.00 $ 11.00 4 Fixed MOH Direct labor 1.50 0.00 1.50 5 Total manufacturing cost for 68,000 units $ 1,360,000 Variable overhead 2.00 0.00 2.00 Purchase price from outsider 0.00 13.00 (13.00) 14.50 S 13.00 $ 1.50 Variable cost per unit Print Done BestSystems Print Done Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches