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FiberSystems manufactures an optical switch that it uses in its final product. FiberSystems incurred the following manufacturing costs when it produced 73,000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell FiberSystems the switch for $14.50 per unit. If FiberSystems 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 outsourcing decision analysis.) FiberSystems needs 80,000 optical switches next year (assume same relevant range). By outsourcing them, FiberSystems can use its idle facilities to manufacture another product that will contribute $150,000 to operating income, but none of the fixed costs will be avoidable. Should FiberSystems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a " 0 " for any zero amounts.) FiberSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product. Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches \begin{tabular}{l|l|r|} \multicolumn{1}{|c|}{ A } & \multicolumn{1}{|c|}{ B } \\ \hline 1 Direct materials & $ & 803,000 \\ \hline 2 & Direct labor & 146,000 \\ \hline 3 & Variable MOH & 219,000 \\ \hline 4 & Fixed MOH & 438,000 \\ \hline 5 & Total manufacturing cost for 73,000 units & $1,606,000 \\ \hline \end{tabular} Data table

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