Global Systems manufactures an optical switch that it uses in its final product. Global Systems incurred the following manufacturing costs when it produced 80,000 units last year: E (Click the icon to view the manufacturing costs.) Global Systems does not yet know how many switches it will need this year; however, another company has offered to sell Global Systems the switch for $13 per unit. If Global Systems buys the switch from the outside supplier, the manufacturing facilities that become idle cannot be used for any other purpose, yet none of the fixed costs are avoidable. Requirements Manufacturing costs Requirement 1. Given the same Complete an incremental analysis nearest cent. All boxes in the C lers to the Direct materials $ Direct labour... 600,000 128,000 168,000 470,000 Variable overhead. Fixed overhead $ 1,366,000 Total manufacturing cost for 80,000 units . Variable cost per unit: Direct materials Print Done Direct labour Variable overhead Purchase price from outside Requirements Total variable cost per unit Decision: $t per unit to buy the switch. Requirement 2. Now, assume i because sales are increasing, 4 Complete an incremental analy 1. Given the same cost structure, should Global Systems make or buy the switch? Show your analysis. 2. Now, assume that Global Systems can avoid $82,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Global Systems needs 85,000 switches a year rather than 80,000. What should Global Systems do now? 3. Given the last scenario, what is the most Global Systems would be willing to pay to outsource the switches? ition, s do now? Glo! Outsou