RootSystems manufactures an optical switch that it uses in its final RootSystems does not yet know how many switches it will need this product. RootSystems incurred the following manufacturing costs when year, however, another company has offered to sell RootSystems the it produced 67.000 units last year: switch for $10.00 per unit. If RootSystems buys the switch from the Click the icon to view the manufacturing costs.) outside supplier, the manufacturing facilities that will be die cannot be used for any other purpose, yet none of the forced costs are avoidable. Read the requirements Requirement 1. Given the same cost structure, should RootSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether RootSystems should make or buy the switch (Enter a "O" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cout to buy exceeds the cost to make.) RootSystems Incremental Analysis for Outsourcing Decision Buy Unit Difference Make Unit Variable cost per unit: Choose from any list or enter any number in the input fields and then continue to the next question. RootSystems manufactures an optical switch that it uses in its final product. RootSystems incurred the following manufacturing costs when it produced 67,000 units last year: Click the icon to view the manufacturing costs.) Read the requirements RootSystems does not yet know how many switches it will need thi year, however, another company has offered to sell RootSystems to switch for $10.00 per unit. If RootSystems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot used for any other purpose, yet none of the fixed costs are avoidab Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Total variable cost per unit Choose from any list or enter any number in the input fields and then continue to the next question. RootSystems manufactures an optical switch that it uses in its final RootSystems does not yet know how many switches it will need this product . RootSystems incurred the following manufacturing costs when year, however, another company has offered to sell RootSystems the it produced 67,000 units last year. switch for $10,00 per unit. If RootSystems buys the switch from the Click the icon to view the manufacturing costs.) outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Read the requirements Decision: because the variable cost per unit to make the switch is than the variable cost per unit to buy the switch Requirement 2. Now, assume that RootSystems can avoid $05,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, RootSystems needs 72,000 switches a year rather than 67,000 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 heeded have increased RootSystems Outsourcing Decision Make Buy Choose from any list or enter any number in the input fields and then continue to the next question. RootSystems manufactures an optical switch that it uses in its final RootSystems does not yet know how many switches it will need this product. RootSystems incurred the following manufacturing costs when year; however, another company has offered to sell RootSystems the it produced 67.000 units last year: switch for $10.00 per unit. If RootSystems buys the switch from the Click the icon to view the manufacturing costs.) outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Read the requirements Outsourcing Decision Make Buy switches switches Total relevant costs than the total relevant costs to buy the Decision Hecause the total relevant costs to make the switches are Choose from any list or enter any number in the input fields and then continue to the next question. RootSystems manufactures an optical switch that it uses in its final RootSystems does not yet know how many switches it will need this product. RootSystems incurred the following manufacturing costs when yoar, however, another company has offered to sell RootSystems the it produced 67.000 units last year. switch for $10.00 per unit. If RootSystems buys the switch from the (Click the icon to view the manufacturing costs.) outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Read the requirements Decision: because the total relevant costs to make the switches are than the total relevant costs to buy the switches Requirement 3. Given the last scenario, what is the most RootSystems 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. Cost if making switches Cost if outsourcing switches Using the basic formula you determined above, solve for the outsourcing cost at which RootSystems would be indifferent between outsourcing and making the switches (Enter your per unit calculation to the nearest cont.) Choose from any list or enter any number in the input fields and then continue to the next question, RootSystems manufactures an optical switch that it uses in its final RootSystems does not yet know how many switches it will need this product. RootSystems incurred the following manufacturing costs when year, however, another company has offered to sell RootSystems the it produced 67,000 units last year switch for $10.00 per unit. If RootSystems buys the switch from the Click the icon to view the manufacturing costs.) outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Read the requirements WIS Requirement 3. Given the last scenario, what is the most RootSystems 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 Cost if making switches Cost If outsourcing switches Using the basic formula you determined above, solve for the outsourcing cost at which RootSystems would be indifferent between outsourcing and making the switches. (Enter your per unit calculation to the nearest cent.) RootSystems 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 Choose from any list or enter any number in the input fields and then continue to the next question RootSystems does not yet know how many year; however, another company has offere optical switch that it uses in its final the following manufacturing costs when ea i Data Table Ims X - ilitie If the B S switc 1 Direct materials 670,000 for 2 Direct labor 100,500 swi 3 Variable MOH 67,000 4 Fixed MOH 402,000 ete Biffere $ ter 1,239,500 5 Total manufacturing cost for 67,000 units erer Print Done s er any number in the input fields and then continue to the next