teet al huess Whed leer u ally individual product. Under this LUHURU many linear feet of each drink should be stocked? How many units of each product will be available for sale each day? 3. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day? E8-25A Make-or-buy product component (Learning Objective 6) TechSystem 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. $ 1 Direct materials 2 Direct labor 3 Variable MOH 4 Fixed MOH 5 Total manufacturing cost for 68,000 units 6 612,000 136,000 68,000 408.000 1,224,000 $ Tech Systems does not yet know how many switches it will need this year; however, another company has offered to sell Tech Systems the switch for $13.50 per unit. If Tech- Systems 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. PTER 8 Requirements 1. Given the same cost structure, should Tech Systems make or buy the switch? Show your analysis. 2. Now, assume that TechSystems can avoid $97,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, TechSystems needs 73,000 switches a year rather than 68,000 switches. What should the company do now? 3. Given the last scenario, what is the most Tech Systems would be willing to pay to outsource the switches