12. GiobalSystems manufactures an optical saitch that it uses in its GlobalSystems does not yet know how many saitches it will need final product. GlobalSystems incurred the following manudacturing costs when it produced T3,000 units last year: this year, however, another company has offered to sell GlobalSystems the switch for $11.50 per unit. If Giobalsyatems 1 (Click the icon to view the manufacturing oosts.) buys the saitch from the outside supplier, the manufacturing Read the requiremente 2. facilies that will be idle cannot be used for ary other purpose, yet none of the fixed costs are avoidable. Rioquirement 1. Given the same cost structure, should GlobalSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether GlobalSystems should make or buy the switch. (Enter a "or for ary zero amounts. found amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy excoeds the cost to make.) GlobalSystems Incremental Analysis tor Outsourcing Decision Decision: (5) because the variable cost per unt to make the saitch is (6) than the variable cost per unit to buy the saibch. Requirement 2. Now, assume that GlabalSystems can avoid $108,000 of fued costs a year by outsourcing production. In addition, because sales are increasing, GlobalSystems needs 78,000 switches a year rather than 73,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming fued costs can be avoided by outsourcing production and the number af units needed have increased. GlobalSystems Outsourcing Decision Decision: (11) because the total reievant costs to make the saitches are (12) than the total relevant costs to buy the saibches. Requirement 3. Given the last soenario, what is the most GlobalSystems would be willing to pay to outsource the saibches? Begin by identifying the basio formula that is used to determine the indilierent outsourcing cost per unit. Using the basio formula you determined above, solve for the outsourcing cost at which GlobalSystems would be indifferent between outsourcing and making the switches. (Enter your per unit calculation to the nearest cent.) GlabalSystems would be indifferent between outsourding and making the switches if the outsourcing cost was per switch. Therefore, Systems will only be willing to outsource if the outsourcing cost is per switch. 2: Requirements 1. Given the same cost structure, should GiobalSystems make or buy the switch? Show your analysis. 2. Now, assume that GlobalSystems can avoid $103,000 of foxed costs a year by outsourcing production. In addifion, because sales are increasing, GlobalSystems needs 78,000 switches a year mather than 73,000 switches. What should the compary do now? 3. Given the last scenario, what is the most GlobalSystems would be wiling to pay to outsource the swibches