to) Question Help TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 60,000 (Click the icon to view the outsourcing decision analysis.) units last year: Tech Systems needs 79,000 optical switches next year (assume same relevant (Click the icon to view the manufacturing costs.) range). By outsourcing them, Tech Systems can use its idle facilities to Another company has offered to sell TechSystems the switch for $10.00 per unit. If manufacture another product that will contribute $140,000 to operating income, TechSystems buys the switch from the outside supplier, none of the fixed costs but none of the fixed costs will be avoidable. Should TechSystems make or buy are avoidable. The company prepared an outsourcing decision analysis to show the switches? Show your analysis the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. TechSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Probsuct Variable unit cost of obtaining the optical switches Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches Choose from any list or enter any number in the input fields and then click Check Answer. ring costs.) range). By outsourcing them, TechSystems manufacture another product that will contrit Systems the switch for $10.00 per unit. If but none of the fixed costs will be avoidable. X vel i Data Table Id - US Direct materials $ 552,000 Direct labor 103,500 Variable MOH 207,000 483,000 Fixed MOH $ al s Total manufacturing cost for 69,000 units 1,345,500 cal Print Done ical switches optical the icon to view the outs ecision ang lowing manufacturing costs when it produced 69,000 ar X its e 0 Data Table 6,0 Te. d h P nel TechSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Variable cost per unit: Direct materials 8.00 S 0.00 $ Direct labor 1.50 0.00 Difference 8.00 1.50 ming Variable overhead 3.00 0.00 0.00 10.00 3.00 (10.00) Purchase price from outsider ining $ 12.50 $ 10.00 $ 2.50 Variable cost per unit aining Print Done enter any number in the input fields and then click Check