Please answer all questions.

GlobalSystems manufactures an optical switch that it uses in its nal product. GlobalSystems incurred the 2(Click the icon to view the outsourcing decision analysis.) following manufacturing costs when it produced 68,000 units last year: 1(Click the icon to View the manufacturing costs.) Another company has offered to sell GlobalSystems the switch for $10.00 per unit. If GlobalSystems buys the switch from the outside supplier, none of the xed 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. GlobalSystems needs 83,000 optical switches next year (assume same relevant range). By outsourcing them, GIobaISystems can use its idle facilities to manufacture another product that will contribute $150,000 to operating income, but none ofthe xed costs will be avoidable. Should GlobalSystems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) GlobalSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product (1) (2) x x Total variable cost of obtaining the optical switches (3) Expected net cost of obtaining the optical switches Decision: (4) 1: Data Table A B 1 Direct materials $ 680,000 2 Direct labor 170,000 3 Variable MOH 68,000 4 Fixed MOH 408,000 5 Total manufacturing cost for 68,000 units $ 1:326:000 2: Data Table GlobalSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable oost per unit: Direct materials 56 10.00 $ 0.00 $ 10.00 Direct labor 2.50 0.00 2.50 Variable overhead 1.00 0.00 1.00 Purchase price from outsider 0'00 10'00 (1000) Variable cost per unit $ 13'50 $ 10'00 $ 3'50 (1) O O Variable unit cost of obtaining the optical switches 0 Expected prot contribution from the other product 0 Expected sales price of the other product 0 Fixed unit cost of obtaining the optical switches (2) O Q Total variable cost of obtaining the optical switches O Conribution margin of optical switches 0 Number of optical switches 0 Sales price of optical switches (3) O 0 Variable unit cost of obtaining the optical switches 0 Expected prot contribution from the other product 0 Expected sales price of the other product 0 Fixed unit cost of obtaining the optical switches (4) 0 Make the optical switches. O Outsource the optical switches and use the facilities to manufacture the other product