1-3 of Requirements please!

WorldSystems manufactures an optical switch that it uses in its final product. WorldSystems incurred the following manufacturing costs when it produced 72,000 units last year: B (Click the icon to view the manufacturing costs.) WorldSystems does not yet know how many switches it will need this year, however, another company has offered to sell WorldSystems the switch for $10.50 per unit. If WorldSystems 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. Read the requirements. Requirement 1. Given the same cost structure, should WorldSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether WorldSystems should make or buy the switch. (Enter a *o* for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Difference WorldSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Variable cost per unit: Direct materials 11.00 $ 0.00 $ Direct labor 0.00 Variable overhead 1.00 0.00 0.00 10.50 Purchase price from outsider 12 $ Total variable cost per unit 10.50 $ 11.00 0 2.00 1.00 (10.50 3.50 Data Table AT B 1 Direct materials $ $ 792,000 2 Direct labor 144,000 3 Variable MOH 72,000 4 Fixed MOH 504,000 $ 5 Total manufacturing cost for 72,000 units 1,512,000 1. Given the same cost structure, should World Systems make or buy the switch? Show your analysis. 2. Now, assume that WorldSystems can avoid $105,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, WorldSystems needs 77,000 switches a year rather than 72,000 switches. What should the company do now? 3. Given the last scenario, what is the most WorldSystems would be willing to pay to outsource the switches