E8-25A (similar to) incurred the Requirements costs when it produced 71,000 units last year 1. Given the same cost structure, should FiberSystems make or buy the swilch? Show your analysis 2 Now assume that F addtion because sales are can avoid $97,000 of fxed costs a year by outsourcing production. In g, FberSystems needs 76000 switches a year rather than sdoes not yet know how many switches it will need this year, however, another company has for $11.50 per unit If FiberSystems buys the switch from the 71,000. What should F do now? the manufacturing facilities that will be idle cannot be used for any other purpose, yet none 3. Given the last scenario, what is the most FiberSystems would be willing to pay to outsource the switches? FiberSystems Buy Direct labor Variable MOH Fixed MOHH S 710,000 77,500 71,000 461500 S 1420 000 0.00 0.00 Variable overhead (11.50) 11.50 Print Done