GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 71,000 units last year: : (Click the icon to view the manufacturing costs.) GlobalSystems does not yet know how many switches it will need this year; however, another company has offered to sell Global Systems the switch for $15.50 per unit. If Global 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 GlobalSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether GlobalSystems 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.) GlobalSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Total variable cost per unit Direct materials $ Direct labor 639,000 142,000 71,000 461,500 Variable MOH Fixed MOH $ 1,313,500 Total manufacturing cost for 71.000 units 1. Given the same cost structure, should GlobalSystems make or buy the switch? Show your analysis. 2. Now, assume that GlobalSystems can avoid $97,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, Global Systems needs 76,000 switches a year rather than 71,000 switches. What should the company do now? 3. Given the last scenario, what is the most GlobalSystems would be willing to pay to outsource the switches