TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 70,000 units last year (Click the icon to view the manufacturing costs.) TechSystems does not yet know how many switches it will need this year, however, another company has offered to sell TechSystems the switch for $14.00 per unit. If TechSystems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Read the requirements. X Requirements Data Table 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis. 2. Now, assume that TechSystems can avoid $104,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, TechSystems needs 75,000 switches a year rather than 70,000 switches. What should the company do now? $ Direct materials 630,000 Direct labor 140,000 70,000 Variable MOH 455,000 Fixed MOH 3. Given the last scenario, what is the most TechSystems would be willing to pay $ 1,295,000 Total manufacturing cost for 70,000 units to outsource the switches? Print Done Print Done Total variable cost per unit