Score: 0 of 1 pt 7 of 9 (6 complete E8-28A (similar to) 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.) RootSy RootSy facilities 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. R make.) RootSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit Direct materials 5.5 S 0.00 5.5 Direct labor 1.25 0.00 1.25 Variable overhead 1 0.00 1 Sales price 14.00 (14.00) Total variable cost per unit 7.75 $ 14.00 -6.25 Choose from any list or enter any number in the input fields and then cick Check Answer 5 parts remaining Clear All MacBook Pro esc F2 F3 @ # & 1 2 3 4 5 6 Q W E R T Y HW Score: 48.99% , 4.41 of 9 pts 7 of 9 (6 complete) EQuestion Help RootSystems does not yet know how many switches it will need this year, however, another company has offered to sell RootSystems the switch for $14.00 per unit. If RootSystems buys the switch from the outside suppier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. 2it uses in its final product. RootSystems incurred the following s last year sts) should RootSystems make or buy the switch? Show your analysis. her RootSystems 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 stems Outsourcing Decision ake Buy Data Table Init Unit Difference 5.5 $ 0.00 Direct materials 737,000 55 1.25 0.00 1.25 Direct labor 167,500 0.00 1 Variable MOH 134,000 14.00 (14.00) Fixed MOH 435,500 7.75 S 14.00 -8.25 Tolal manufacturing cost for 67,000 units 1.474,000 Print Done n the input felds and then click Check Answer Clear All Check Answer MacBook Pro 10 12 buy the switch? Show your analysis. Requirements 1. Given the same cost structure, shou ld RootSystems make or buy the switch? Show your analysis. 2. Now, assume that RootSystems can avoid $105,000 of fixed costs a year by outsourcing production. In addition, because sales are acreasing, RootSystems needs 72,000 switches a year rather than 67,000 switches. What should the company do now? 3. Given the last scenario, what is the most RootSystems would be willing to pay to outsource the switches? Done Print hen click Check Answer Clear All MacBook Pro O00 000 F4 DII DD F5 F6 F8 F9 L