Refer to E8- 38B. Global Systems needs 80,000 optical switches next year (assume same relevant range). By

Question:

Refer to E8- 38B. Global Systems needs 80,000 optical switches next year (assume same relevant range). By outsourcing them, Global Systems can use its idle facilities to manufacture another product that will contribute $ 110,000 to operating income, but none of the fixed costs will be avoidable. Should Global Systems make or buy the switches? Show your analysis.