1. InteliSystems manufactures an optical switch that it uses in its final product. (Click the icon to
view the outsourcing decision analysis.) InteliSystems incurred the following manufacturing
costs when it produced 68,000 units last year: InteliSystems needs 78,000 optical switches next
year (assume same (Click the icon to view the manufacturing costs.) relevant range). By
outsourcing them, InteliSystems can use its idle Another company has offered to sell
InteliSystems the switch for $12.00 per unit. facilities to manufacture another product that will
contribute $220,000 to If InteliSystems buys the switch from the outside supplier, none of the
fixed costs operating income, but none of the fixed costs will be avoidable. Should are avoidable.
The company prepared an outsourcing decision analysis to show InteliSystems make or buy the
switches? Show your analysis. the cost per unit of making the switches versus the cost per unit of
buying (outsourcing) the switches. Complete the Best Use of Facilities Analysis. (Enter a "0" for
any zero amounts.)
ata table