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GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 68,000 units last year:
GlobalSystems manufactures an optical switch that it uses in its final product. GlobalSystems incurred the following manufacturing costs when it produced 68,000 units last year: GlobalSystemsdoesnotyetknowhowmanyswitchesitwillneedthisyear;however,anothercompanyhasofferedtosellGlobalSystemstheswitchfor$11.50perunit.IfGlobalSystemsbuystheswitchfromtheoutsidesupplier,(Clicktheicontoviewthemanufacturingcosts.) Read the requirements. Complete an incremental analysis to show whether GlobalSystems 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.) Data table Requirements 1. Given the same cost structure, should GlobalSystems make or buy the switch? Show your analysis. 2. Now, assume that GlobalSystems can avoid $106,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, GlobalSystems needs 73,000 switches a year rather than 68,000 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
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