Please provide answer for Requirement 3 with explanantion

Global Systems manufactures an optical switch that it uses in its final product Global Systems incurred the following manufacturing costs when it produced 79.000 units last year. B (Click the icon to view the manufacturing costs.) Global Systems does not yet know how many switches it will need this year, howeve - Xstems buys the switch from the outside supplier, the manufacturing facilities that become idle cannot be used for any other p Manufacturing costs Requirements Direct materials. $ 695.200 UUSUUTCHY ULLISIUNI Direct labour....... 126 400 Variable overhead 221 200 MIGHT Make switches Buy switches 13.20 $ 14.80 LIG Variable cost per unit Fixed overhead 465 000 HIS Units needed 85 000 85,000 $2.507.800 Total manufacturing cost for 79.000 units Total variable costs 1.122.000 1258 000 Fixed costs 465,000 387 000 Total relevant costs $ 1.587 000 9 1.645.000 Print Done Decision Make the optical switch because the total relevant costs to make the sy Requirement 3. Given the last scenario, what is the most Global Systems would be willing to pay to outsource the switchesel(Round your answers to the nearest centa) Global Systems would be indifferent between outsourcing and making the switches if the outsourcing cost was slim per switch. Therefore, Global Systems will only be willing to outsource if the outsourcing cost is 7 $ per switch Global Systems manufactures an optical switch that it uses in its final product Global Systems incurred the following manufacturing costs when it produced 79.000 units last year. (Click the icon to view the manufacturing costs.) Global Systems does not yet know how many switches it will need this year however, another company has offered to sell Global Systems the switch for $14 80 per unit. If Global Systems buys the switch from the outside supplier, the manufacturing facilities that become idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Requirements HEID Requirement 1. Given the same cost structure, should Global Systems make or buy the switch? Show your analysis Complete an incremental analysis to show whether Global Systems should make or buy the switch. (Round your answers to the nearest cent. All boxes in the Cost to Make Minus Cost to Buy column should have a value entered.) Global Systems Outsourcing Decision Make Unit Buy Unit Cost to Make Minus Cost to Buy Variable cost per unit Direct materials $ 8.80 $ 8.80 Direct labour 1.60 1/60 Variable overhead 2.80 2180 Purchase price from outsider 14.80 (14 80N an HAON Aliate Windows Global Systems manufactures an optical switch that it uses in its final product Global Systems incurred the following manufacturing costs when it produced 79,000 units last year (Click the icon to view the manufacturing costs.) Global Systems does not yet know how many switches it will need this year however another company has offered to sell Global Systems the switch for $14 80 per unit. If Global Systems buys the switch from the outside supplier, the manufacturing facilities that become idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Requirements KTEREM Variable cost per unit: Direct materials $ 8.80 8.80 Direct labour 1.60 1.60 Variable overhead 2.80 2.80 Purchase price from outsider 14.80 (14.800 Total variable cost per unit $ 13.20 $ 14.80 $ K160 Decision Make the optical switch because the variable cost per unit to make the switch is less than the variable cost per unit to buy the switch Requirement 2. Now, assume that Global Systems can avoid $78.000 of fixed costs a year by outsourcing production. In addition because sales are increasing Global Systems needs 85 000 switches a year rather than 79.000. What should Global Systems do now? Complete an incremental analysis to calculate relevant costs Global Systems Outsourcing Decision Global Systems manufactures an optical switch that it uses in its final product. Global Systems incurred the following manufacturing costs when it produced 79,000 units last year. (Click the icon to view the manufacturing costs.) Global Systems does not yet know how many switches it will need this year, however, another company has offered to sell Global Systems the switch for $14 80 per unit. If Global Systems buys the switch from the outside supplier, the manufacturing facilities that become idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Requirements ON Complete an incremental analysis to calculate relevant costs. Global Systems Outsourcing Decision Make switches Buy switches Variable cost per unit S 13.20 $ 14.80 Units needed 85.000 85.000 Total variable costs 122.000 1258 000 Fixed costs 465 000 387.000 1587 000 Total relevant costs $ 1645.000 Decision Make the optical switch because the total relevant costs to make the switches are less than the total relevant costs to buy the switches Requirement 3. Given the last scenario what is the most Global Systems would be willing to pay to outsource the switches? (Round your answers to the nearest cent.)