Read the requirements. Vanapie overhead 1.00 U.UU 100 Purchase price from outsider 0.00 16.50 (16.50) 14.00 $ 16.50 $ (2.50) Total variable cost per unit avoidable Decision Make the optical switch because the variable cost per unit to make the switch is less than the variable cost per unit to buy the switch. Requirement 2. Now, assume that BestSystems can avoid $104,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing. BestSystems needs 78,000 switches a year rather than 73,000 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. BestSystems Outsourcing Decision Make switches Buy switches Variable cost per unit 14.00 5 Units needed 78,000 10.00 78,000 Total variable costs 1,002,000 1,287,000 438.000 Fixed costs $ 1,530,000 Total relevant costs Get more help Clear all Final check