x bn Help 0 $ 8-28A 0 Data Table TechSyster uses in its Following m 70,000 unit Direct materials (Click Direct labor costs.) Variable MOH Read the re Fixed MOH analysis. Complete a Total manufacturing cost for 70,000 units '0" for Dost to * Requirements 770,000 70,000 210,000 385,000 many er, another tems the tems buys the manufacturing ed for any osts are $ 1,435,000 Witch. (Enter a the Variabil 1. Given the same cost structure, should TechSystems make or buy the switch? Show your analysis. 2. Now, assume that Tech Systems can avoid $104,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Tech Systems needs 75,000 switches a year rather than 70,000 switches. What should the company do now? 3. Given the last scenario, what is the most Tech Systems would be willing to pay to outsource the switches? Print Done Choose TechSystems manufactures an optical switch that it Tech Systems does not yet know how many uses in its final product. Tech Systems incurred the switches it will need this year; however, another following manufacturing costs when it produced company has offered to sell Tech Systems the 70,000 units last year: switch for $18.50 per unit. If Tech Systems buys the Click the icon to view the manufacturing switch from the outside supplier, the manufacturing costs.) facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are Read the requirements. avoidable. analysis. Complete an incremental analysis to show whether TechSystems should make or buy the switch. (Enter a "0" 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.) TechSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit