please do requirements 1-3
requirement 3 and data table
awnser choices below if needed
Requirement 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis Complete an incremental analysis to show whether TechSystems should make or buy the switch (Enter a " 0 " for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Decision (5) because the variable cost per unit to make the switch is (6) than the variable cost per unit to buy the switch Requirement 2. Now, assume that TechSystems can avoid $108,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, TechSystems needs 71,000 switches a year rather than 66,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production and the number of units needed have increased Requirement 3. Given the last scenario, what is the most TechSystems would be willing to pay to outsource the switches? Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit. Using the basic formula you determined above, solve for the outsourcing cost at which TechSystems would be indifferent between outsourcing an making the switches (Enter your per unit calculation to the nearest cent) TechSystems would be indifferent between outsourcing and making the switches if the outsourcing cost was per switch. Therefore, Systems will only be willing to outsource if the outsourcing cost is per switch 1: Data Table 2: Requirements 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis 2. Now, assume that TechSystems can avoid $108,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing. TechSystems needs 71,000 switches a year rather than 66,000 switches. What should the company do now? 3. Given the last scenano, what is the most TechSystems would be willing to pay to outsource the switches? (1) Purchase price from outsider \begin{tabular}{l|l} \hline Direct labor & Sales price \\ \hline Direct materials & Variable overhead \\ \hline Fixed overhead \end{tabular} (2) Purchase price from outsider Direct labor Sales price Direct materials Variable overhead Fixed overhead (3) Purchase price from outsider \begin{tabular}{l|l} Direct labor & Sales price \\ \hline Direct materials & Variable overhead \\ \hline Fixed overhead & \end{tabular} (4) Purchase price from outsider (5) Make the optical switch Direct labor Sales price Buy the optical switch Direct materials Variable overhead Fixed overhead (6) \begin{tabular}{l|l|l|} \hline lessgreater & TotalvariablecostsUnitsneeded \\ \hline \end{tabular} Fixed cost per unit. (8) Total variable costs Contribution margin per unit Fixed costs Fixed cost per unit (9) Total variable costs Contribution margin per unit Units needed Fixed costs Variable cost per unit Fixed cost per unit (10) Total variable costs (11) Make the oplical switch Contribution margin per unit. Units needed Buy the optical switch Fixed costs Variabie cost per unit Fixed cost per unit. (12) less greater (12) less greater (13) \begin{tabular}{l|l|} Direct materials + Direct labor & Sales revenue - Total costs \\ Direct materials + Direct labor + Variable costs \\ Sales revenue - Fixed costs & Sales revenue - Variable costs \\ Variable costs + Fixed costs \end{tabular} (14) Sales revenue- Total costs Direct materials + Direct labor Sales revenue - Variable costs Direct materials + Direct labor + Variable costs Variable costs + Fixed costs Sales revenue - Fixed costs (15) equal greater than less than
