World Systems manufactures an optical switch that uses in its final product World Systems incurred the following manufacturing costs when it produced 65,000 units last year (Click the loon to view the manufacturing costs) Another company has offered to sell World Systems the switch for $1550 per unit, it World System buys the switch from the outside supplier none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches (Click the icon to view the cut World Systems reeds 14.000 facilities to manufacture another pr World Systems make or buy the Complete the Best Use of Facilities Analysis (Enir a "U" for any zero amounts.) World Systems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Data Table Total variable cost of obtaining the optical switches 1 Direct materials 2 Direct labor 3 Variable MOH 4 Fixed MOH sas.000 00.000 195.000 Expected net coat of obtaining the optical switches 357, Inba 1.202.b 5 Total manufacturing cost for 65,000 units 5 Print Done Choose from any list or enter any number in the input fields and then click Check Answer 1 part remaining Clear A nit Click the icon to view the outsourcing decision analysis.) World Systems needs 84,000 optical switches next year (assume same relevant range). By outsourcing them. WorldSystems can use its idle facilities to manufacture another product that will contribute $140,000 to operating income, but none of the fixed costs will be avoidable. Should World Systems make or buy the switches? Show your analysis. hes * Data Table - X WorldSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit B Difference $ 585,000 65,000 9.00 $ 9.00 0.00 $ 0.00 1.00 1.00 195,000 357 soal Inbox 1,202,50 Variable cost per unit: Direct materials Direct labor Variable overhead Purchase price from outsider 3.00 0.00 0.00 15.50 3.00 (15.50 s for 65,000 units $ 13.00 $ 15.50 $ (2.50) Variable cost per unit nt Done Print Done