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TechSystem manufacturers an optical switch that it uses inn ties final product. TechSystem incurred the following manufacturing cost when it produced 75,000 units last year.

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TechSystem manufacturers an optical switch that it uses inn ties final product. TechSystem incurred the following manufacturing cost when it produced 75,000 units last year. Another company has offered to sell the switch to TechSystem for $13 per unit. Requirement One: Given the same cost structure should TechSystems make of buy the switch? Show your work below: Requirement Two: Assume that TechSystem can avoid $112,000 per year of fixed costs if they outsource production. Also assume TechSystem needs 80,000 switches. What should TechSystem do? Show your work below

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