question 5

Data table ro amounts. Rou Requirements 1. Given the same cost structure, should GlobalSystems make or buy the switch? Show your analysis. 2. Now, assume that GlobalSystems can avoid $102,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing. GlobalSystems needs 70,000 switches a year rather than 65,000 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? framed the tufowing mantelsctaring costs when it produced 65.000 unes last year- GlobalSystems does not yot know now many switches i will need this year, howeyer, another compary has offered to seh Clobalsystems the switch for $11,50 per unit. if Clobalsystoms bugs the switch from the outside supplior, the manutacturing faclities : will be idlo cannot be usod for any other purpose, yet nene of the fixed costs are Read the ravulemens. avaidable. Requirement 1, Given the same cost structure, should Globas systoms make or buy the swich? show your analysis. pardithetess when the cost to buy exseeds the cost fo make