FiberSystems manutactures an optical switch that it uses in its final produch. FiberSystems does not yot know how many wwitches it will neod this year, FiberSystems incurred the following manulacturing costs when it produced 65.000 units however, another company has ollered to sel FiberSystems the wwich for 59.50 per unit. if Fiber5ysterns buys the switch trom the outside supplier, the last year (Cick the icon to view the manulacturing costs.) manulacturing foclities thet will be idie cannot be used for ary other purpose. yet monin of the fired costs are avcidable. Read the tequirements Decision because the variable cost per unit to make the swith is than the variable cost per unit to buy the wwich. Requirement 2. Now astume that Fiberbystema can ovoid $105.000 of fxed costs a year by outsourcing production. In additon, because sains are increaing. Fiber3yitems. needs 70,000 witches a year tather than 65.000 wwithes. What should the conpany do now? Complete an outsourcing decialon analysis assuming fixed coats can be avoided by outsourcing prodictan and then mumber of unils needed hove increased Data table Requirements 1. Given the same cost structure, should FiberSystems make or buy the switch? Show your analysis. 2. Now, assume that FiberSystems can avoid $105,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, FiberSystems 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 FiberSystems would be willing to pay to outsource the switches