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Techsystems manufsctures an oplical wich that it uses in its fruil produc. Toch Systens incurred Tech Systerita does not yet hnow how many wweches it

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Techsystems manufsctures an oplical wich that it uses in its fruil produc. Toch Systens incurred Tech Systerita does not yet hnow how many wweches it Wil need this yar: however, the following manulacturing costh when it produchd 07,000 unas last year: another compary has otlered to sel Techsyiems the wish for 5 t 6.00 per unt if be idle cannot be used for any other purpote, ynt none of the fond conts are urcidable 1. Given the same cost structure, should Techsystems make or buy the switch? Show your analyeis 2. Now, assume that TechSystems can wroid $104,000 of fixed costs a year by outsoureng production. In addtion, because asles are increasinp. TechSystems needs 72,000 switches a year rather than 67,000 switchos. What should the compary do now? 3. Given the last scenarib, what is the most Tech 5 ysterns would be willing to pay to outsource the switches? Decision: because the varsble cost per unit to make the switch is than the vanatile cost per unit to tuy the awitch year rather than 67,000 switches. What should the compary do now? Complete an outsourcing decision analyas assuming fixed coats can be avoided by outsourcing production and the number of units needed heve increated. TechSystems year rather they 67,000 swiches. What should the company do now? Completp an outsourcing decision anaiysis assuming fied coss can be troided by outsourcing production and the numiter of unts needed ham increated. Decision: becavise the total rewevant costs to mabe the swithes are thes ere bial relevant costs is buy the vieches. Requirement 3. Given the last scenario, what is the most Techsystems aodd be witing ta pey ta outsource the swidetes? Begin by isentrying the basic formula that is used to determine the ind flerent cutsourcing cost pert unt. 10 the nearest cent.) Requirement 3. Given the last scenario, what is the most Techsystems would be wiling to pay to outsource the swithes? Begin by identifying the basic formula that is used to delermine the indifferent cutsourcing cost por unit. to the noarest cent.) Tosh5ystems would be indifferem between outsourcing and making the switches if the cutsoutcing cost was per switch. Therefore, Systemes wit only be willing to outsource if the outsourcing cost is per awitch

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