The System are an optical wedi that needs for product and company has offered to the store the wcho $150 per Nine West and conven Dent Systems 10.000 pical switches you sorting them the Systems can be idle tecilities to mandatum hic that wil.com 260.000 tonncom Data Table Make Outsource Difference optical switch optical witch (Make-Outsource) $ Reporter the expected not come the best home will incerto com 60,000 was under the Outre switch Facilities Mike Swisho Make Valto Deals Decor Variable mamitacing overhead Purchase cost Expected profit contribution from the other product focal expert cost of the optical switches Valot Direct materials Decator Variable overed Purchase price from outsider Differential content 700 150 400 $ 1250 $ 700 150 200 11500 1500 15.00 250 Print Done Enter yet in the edit and then click Check Awet 1 Identify the expected cous that Best Sylum incur loi 00.000 with under the native plans make the winches buy the switches and leave facilities buy the switches and use the defacies to make the produd 2. Which plan mas the best of Best System's taches Support your mang Best Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Best Systems the switch for $15.00 per unit. None of Best's fixed costs are avoidable. Click the icon to view the outsourcing decision.) Requirement 1. Identify the expected net costs that Best Systems will incur to acquire 80,000 switches under the Outsource switches Facilities Make new Idle product Switch costs Make Variable costs: Direct materials Direct labor Variable manufacturing overhead Purchase cost Expected profit contribution from the other product Total expected net cost of the optical switches Sell Best Systems needs 80,000 optical switches. By outsourcing them, Best Systems can use its idle facilities to manufacture another product that will contribute $250,000 to operating income. * Requirements er the 1. Identify the expected net costs that Best Systems will incur to acquire 80,000 switches under three alternative plans: make the switches, buy the switches and leave facilities idle, buy the switches and use the idle facilities to make another product 2. Which plan makes the best use of Best System's facilities? Support your answer Data Table Make Outsource Difference optical switch optical switch (Make-Outsource) Variable costs Direct materials Direct labor Variable overhead 7.00 1.50 700 150 400 Purchase price from outsider 15.00 4.00 (15:00) (2.50 12.50 $ wer Differential cost per unit 1500 5
