Tech Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Tech Systems the switch for $16.50 per unt. None of Tech's food costs are avoidable mick the icon to view the outsourcing decision Tech Systems needs 12.000 optical switches. By outsourcing them. Tech Systems can use is idle totes to manufacture another product hat will contribute $223,000 to operating income Read the recent Requirement 1. Sesty the expected ne coon that Tech Systems will incur to acquire 82.000 switches under the attematve plans Outsource witches Facilities Make new Requirements Switch costs Make product Vrtecoste Direct materials 1. Identity the expected nel contrat Tech Systems will incur to acquire 82.000 switches under three sternative plans make the switches buy the switches and leave faciles de Direct labor buy the switches and use the detailides to make another product Variable manufacturing overhead 2. Which plan makes the best use of Tech System's facilities? Support your answer Purchase cout Expected profit contribution to the other product Print Total expected net coat of the optical switches Dono Data table Male Outsource Difer pical switch seal switch Make-Outsource] Watco Direct materials Direct labor Variable overhead Purchase price from outside Differential cost per unit 400 500 8.00 400 5.00 (16.50) H50 15.00 16.50 11.50 Tech Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Tech Systems the switch for $16.50 per unt. None of Tech's food costs are avoidable mick the icon to view the outsourcing decision Tech Systems needs 12.000 optical switches. By outsourcing them. Tech Systems can use is idle totes to manufacture another product hat will contribute $223,000 to operating income Read the recent Requirement 1. Sesty the expected ne coon that Tech Systems will incur to acquire 82.000 switches under the attematve plans Outsource witches Facilities Make new Requirements Switch costs Make product Vrtecoste Direct materials 1. Identity the expected nel contrat Tech Systems will incur to acquire 82.000 switches under three sternative plans make the switches buy the switches and leave faciles de Direct labor buy the switches and use the detailides to make another product Variable manufacturing overhead 2. Which plan makes the best use of Tech System's facilities? Support your answer Purchase cout Expected profit contribution to the other product Print Total expected net coat of the optical switches Dono Data table Male Outsource Difer pical switch seal switch Make-Outsource] Watco Direct materials Direct labor Variable overhead Purchase price from outside Differential cost per unit 400 500 8.00 400 5.00 (16.50) H50 15.00 16.50 11.50
