Question 4:

Opti Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon to view the costs.) (i) (Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Opti Systems should make or buy the switch. (For the Difference column, use a minus sign of the cost of outsourcing exceeds the cost of making the switches in-house.) Data table More info Another company has offered to sell Opti Systems the switch for $19.00 per unit. If Opti Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Decision: make the optical switch