GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 66,000 units last year: GlobalSystems does not yet know how many switches it will need this year; however, (Click the icon to view the manufacturing costs.) another company has offered to sell GlobalSystems the switch for $10.00 per unit. If GlobalSystems 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 Read the requirements. avoidable. Decision: because the variable cost per unit to make the switch is than the variable cost per unit to buy the switch. Requirement 2. Now, assume that GlobalSystems can avoid $108,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, GlobalSystems needs 71,000 switches a year rather than 66,000 switches. What should the company do now? Complete an outsourcing decision analysis assuming fixed costs can be avoided by outsourcing production and the number of units needed have increased. Data table