What is the decision? Buy or make the optical switch?

Data Table Direct materials $ 9.00 Direct labor 3.50 Variable overhead 6.00 Fixed overhead 8.50 $ 27.00 Manufacturing product cost Print Done Difference Take-Outsource) i More Info Another company has offered to sell Laser Systems the switch for $21.50 per unit. If Laser Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Print Done Laser Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing co (Click the icon to view the costs.) (Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Laser Systems should make or buy the switch. (For the Difference co in-house.) Make Difference Outsource optical switch optical switch (Make-Outsource) Variable costs: Direct materials 9.00 9.00 Direct labor 3.50 3.50 Variable overhead 6.00 6.00 21.50 Purchase price from outsider (21.50) (3.00) 18.50 $ 21.50 $ Total differential cost per unit Decision: buy the optical switch make the optical switch