Score: 0 of 3 pts 3 of 3 (2 complete) HW Score: 38%, 3.8 of 10 pts E8-28A (similar to) Question Help * InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems incurred the following manufacturing InteliSystems does not yet know how many switches it will need this yeer; however, another company has offered to sell costs when it produced 67,000 units last year EE(Cck the icon to view the manutachuring costs) Read the raquiraments InteliSystems the switch for S12.50 per unit. If InteliSystems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannct be uscd for any other purpose, yet none of the fixed costs arc avoidable Requirement 1. Given the same cost structure, should InteliSystems make or buy the switch? Show your anlysis. Complete an incremental analysis to show whether Intelisystems should make or buy the swich (Enter a"" tor any zero amounts Round amounts to the nearest cent Use a minus sign or parentheses when the cost to buy exceeds the cost to make) IntellSystems Incremental Analysis for Outsourcing Decision Data Table -XRequirements Buy Unit Unit Difference Variable cost per unit 1. Given the same cost structure, should InteliSystems make or buy the switch? Direct matenals Direct labor Variable MOH Fixed MOH Total manufacturing cost for 67,000 unis $D OOD 67,000 201,000 469,000 S 1,407,000 Show your analysis 2. Now, assume that InteliSystems can avoid $110,000 of fixed costs a year by cutsourcing production. In addition, because sales are increasing InteliSystems needs 2,000 switches a year rather than sWtChes What should the company d o now? 3. Given the last scenario, what is the most InteliSystems would be willing to pay to oulsource the swilches? Total vanable cost per unit Print Done Print Done Choose from any list or enter any number in the Input flelds and then cllck Check