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Global Systems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 74,000 units last year: (Click the icon to view the manufacturing costs.) Read the requirements. GlobalSystems does not yet know how many switches it will need this year; however, another company has offered to sell GlobalSystems the switch for $7.50 per unit. If GlobalSystems buys the switch from the outside supplier, the manufacturing facilities that will be idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. en Data Table - X is tot B ecis 1 Direct materials $ 592,000 muy nit 2 Direct labor 74,000 3 Variable MOH 148,000 4 Fixed MOH 444,000 5 Total manufacturing cost for 74,000 units $ $ 1,258,000 and Print Done Requirements -X 1. Given the same cost structure, should GlobalSystems make or buy the switch? Show your analysis 2. Now, assume that GlobalSystems can avoid $99,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, GlobalSystems needs 79,000 switches a year rather than 74,000 switches. What should the company do now? 3. Given the last scenario, what is the most GlobalSystems would be willing to pay to outsource the switches? Id Print Done (Click the icon to view the manufacturing costs.) Read the requirements. wurm Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Total variable cost per unit Choose from any list or enter any number in the input fields and then click Check Answer. 5 parts remaining