Eclipse Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Eclipse Systems the switch for $20.00 per unit. None of Eclipse's fixed costs are avoidable. (Click the icon to view the outsourcing decision.) Eclipse Systems needs 80,000 optical switches. By outsourcing them, Eclipse Systems can use its idle facilities to manufacture another product that will contribute $250,000 to operating income. Read the requirements. Requirement 1. Identify the expected net costs that Eclipse Systems will incur to acquire 80,000 switches under three alternative plans. i Data Table Outsource switches Facilities Make new Idle product Switch costs Make Make optical switch Outsource optical switch Difference (make-outsource) Variable costs: Direct materials 11.00 Variable costs: Direct materials Direct labor Variable manufacturing overhead Purchase cost Direct labor Variable overhead 4.50 6.00 11.00 4.50 6.00 (20.00) Purchase price from outsider 20.00 20.00 $ Expected profit contribution from the other product $ 21.50 $ 1.50 Differential cost per unit Total expected net cost of the optical switches i Requirements Print Done Enter any number in the edit fields and then click Check A part remaining 1. Identify the expected net costs that Eclipse Systems will incur to acquire 80,000 switches under three alternative plans. 2. Which plan makes the best use of Eclipse System's facilities? Support your answer. Check