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TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 68.000 units last year:

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TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 68.000 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 S13 50 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

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