Fiber Systems manufactures an optical switch that it uses in its final product. Fiber Systems incurred the following manufacturing costs when it produced 67,000 units last year: (Click the icon to view the manufacturing costs.) Fiber Systems does not yet know how many switches it will need this year, however, another company has offered to sell Fiber Systems the switch for $19.00 per unit. If Fiber Systems 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 Fiber Systems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether Fiber Systems should make or buy the switch. (Enter a "0" 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.) Fiber Systems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Total variable cost per unit Direct materials Direct labor Variable MOH 737,000 100,500 201,000 368,500 1,407,000 Fixed MOH $ Total manufacturing cost for 67,000 units 1. Given the same cost structure, should Fiber Systems make or buy the switch? Show your analysis. 2. Now, assume that Fiber Systems can avoid $99,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Fiber Systems needs 72,000 switches a year rather than 67,000 switches. What should the company do now? 3. Given the last scenario, what is the most Fiber Systems would be willing to pay to outsource the switches