Question Help Laser Systems manufactures an optical switch that it uses in its final product. Laser Systems needs 81,000 optical switches. By outsourcing them, Laser Another company has offered to sell Laser Systems the switch for $15.00 per unit. Systems can use its idle facilities to manufacture another product that will None of Laser's fixed costs are avoidable. contribute $222,000 to operating income. Click the icon to view the outsourcing decision.) Read the requirements. pw Data Table Et Make Outsource Difference optical switch optical switch (Make-Outsource) $ 7.00 $ 7.00 Variable costs: Direct materials Direct labor Variable overhead 1.00 1.00 5.00 Purchase price from outsider S 15.00 5.00 (15.00) (2.00) $ 13.00 $ 15.00 $ Differential cost per unit because this plan results in the lowest Print Done and Enter any number in the edit fields and then continue to the next question. Laser Systems manufactures an optical switch that it uses in its final product Another company has offered to sell Laser Systems the switch for $15.00 per unit None of Laser's fixed costs are avoidable. Click the icon to view the outsourcing decision.) Laser Systems needs 81,000 optical switches. By outsourcing them, Laser Systems can use its idle facilities to manufacture another product that will contribute $222,000 to operating income. Read the requirements Requirement 1. Identify the expected net costs that Laser Systems will incur to acquire 81,000 switches under three alternative plans. Outsource switches Facilities Make new Switch costs Make Idle product Variable costs: Direct materials $7.00 Direct labor $1.00 Variable manufacturing overhead $5.00 Purchase cost $15.00 Expected profit contribution from the other product Total expected not cost of the optical switches Requirement 2. Which plan makes the best use of Laser System's facilities? Support your answer. Laser Systems should because this plan results in the lowest Enter any number in the edit fields and then continue to the next question, Laser Systems manufactures an optical switch that it uses in its final product. Laser Systems needs 81,000 optical switches. By outsourcing them, Laser Another company has offered to sell Laser Systems the switch for $15.00 per unit. Systems can use its idle facilities to manufacture another product that will None of Laser's fixed costs are avoidable. contribute $222,000 to operating income. (Click the icon to view the outsourcing decision.) Read the requirements Facilities Make new Switch costs Make Idle product Variable costs: Direct materials $7.00 Direct labor $1.00 Variable manufacturing overhead $5.00 Purchase cost $15.00 Expected profit contribution from the other product Total expected net cost of the optical switches Requirement 2. Which plan makes the best use of Laser System's facilities? Support your answer. Laser Systems should because this plan results in the lowest However, Laser Systems should also consider qualitative factors such as and Enter any number in the edit fields and then continue to the next