Score: 0 of 2 pts 12 of 12 (10 complete) HW Score: 65.22%, 12.39 of 19 pts E8 X Question Help Data Table icon to view the outsourcing decision analysis.) Ted pro whe B needs 81,000 optical switches next year (assume range). By outsourcing them, Tech Systems can use sto manufacture another product that will contribute erating income, but none of the fixed costs will be uld Tech Systems make or buy the switches? Show 1 Direct materials $ 639,000 2 Direct labor 177,500 And $17 sup pre of (ou 3 Variable MOH 213,000 4 Fixed MOH 497,000 5 Total manufacturing cost for 71,000 units $ 1,526,500 Cor Data Table TechSystems Incremental Analysis for Outsourcing Decision Expected profit Make Buy Unit Unit Difference Variable cost per unit: Total variable cos Direct materials $ 9.00 $ 0.00 $ 9.00 Direct labor 2.50 0.00 2.50 Expected net cos Variable overhead 3.00 0.00 3.00 0.00 17.00 Purchase price from outsider (17.00) $ 14.50 $ 17.00 $ Variable cost per unit (2.50) Print Dane E8-31A (similar to) Question Help Tech Systems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 71,000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell Tech Systems the switch for $17.00 per unit. If Tech Systems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. B (Click the icon to view the outsourcing decision analysis.) TechSystems needs 81,000 optical switches next year (assume same relevant range). By outsourcing them, Tech Systems can use its idle facilities to manufacture another product that will contribute $130,000 to operating income, but none of the fixed costs will be avoidable. Should Tech Systems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) Tech Systems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Expected profit contribution from the other product Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches