US E8-28A (similar to) BestSystems manufactures an optical switch that it uses in its final product. BestSystems incurred the Best Systems does not yet know how many switches it will need this year, however, another company following manufacturing costs when it produced 72,000 units last year: has offered to sell BestSystems the switch for $16.00 per unit. BestSystems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other Click the icon to view the manufacturing costs.) purpose, yet none of the feed costs are avoidable. Read the requirements Requirement 1. Given the same cost structure, should BestSystems make or buy the switch? Show your analysis Complete an incremental analysis to show whether BestSystems should make or buy the switch (Enter a "o for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Requirements BestSystems Incremental Analysis for Outsourcing Decision Make Variable cost per unit 1. Given the same cost structure, should BestSystems make or buy the switch? Show your analysis 2. Now, assume that Best Systems can avoid $104,000 of fixed costs a year by outsourcing production. In addition, because we are increasing BestSystems needs 77,000 wwitches a year rather than 72 000 switches. What should the company do now? 3. Given the last scenario, what is the most BestSystems would be willing to pay to outsource the switches? Total variable cost per unit Print Done BestSystems manufactures an optical switch that it uses in its final product, Besystems incurred the blowing manufacturing costs when it produced 72.000 units last year Click the icon to view the manufacturing costs) BestSystems does not yet know how many switches it will need this year, however, another company has offered to sell BestSystems the switch for $16.00 per unit. BestSystems buys the switch from the outside supplier the manufacturing facilities that will be ide cannot be used for any other purpose, yet none of the find costs are avoidable. Requirement. Given the same cost structure, should Best Systems make or buy the witch? Show your analysis Complete an incremental analysis to show whether BestSystems should make or buy the switch (Entera "O" for any rere amounts Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make) Data Table BestSystems Incremental Analysis for Outsourcing Decision Make Buy Difference $ Variable cost per unit: Direct materials Direct labor Variable MOH 792.000 108,000 144,000 395.000 Ford MOH Total manufacturing cost for 72.000 units $ 1440,000 Print Done