This question: $7$ point$($s$)$ possible

$\_$aser Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Laser Systems the switch for $$22\mathrm{.}00$ per unit. None of Laser's fixed costs are avoidable.

$($Click the icon to view the outsourcing decision.$)$

Laser Systems needs $78,000$ optical switches. By outsourcing them, Laser Systems can use its idle facilities to manufact another product that will contribute $$220,000$ to operating income.

Read the requirements.

Requirement $1.$ Identify the expected net costs that Laser Systems will incur to acquire $78,000$ switches under three alternative plans.

$\backslash$table$[[,$Switch costs,Outsource switches$],[,$Facilities,Make new$],[$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,,$]]$

Requirement $2.$ Which plan makes the best use of Laser System's facilities? Support your answer.

Laser Systems should because this plan results in the lowest

However, Laser Systems should also consider qualitative factors such as and

Data table