Roquirement 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 "or for ary zero amounts. found amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Decision: (5) because the variable cost per unt to make the switch is (6) than the variable cost per unit to buy the switch. Requirement 2. Now, assume that GlobalSystems can avoid $108,000 of fued costs a year by outsourcing production. In addition, because sales are increasing. GiobalSystems needs 78,000 switches a year rather than 73,000 switches. What should the company do now? Complete an outsourcing deciaion analyais assuming fued costs can be avaided by outsourcing production and the number of units needed have increased. Decision: (11) because the total releunant costs to make the switches are (12) than the total relevant costs to buy the switches. Using the basio formula you determined above, solve for the outsourcing cost at which GlobalSystems would be indifferent between outsourcing and making the switches. (Enter your per unit calculation to the nearest cent.) Globalsystems would be indifferent between outsourding and making the switches if the outsourding cost was per switch. Therefore, Systems will only be willing to outsource it the outsourding cost is per switch. 2: Requirements 1. Given the same cost structure, should GlobalSystems make or buy the switch? Show your analysis. 2. Now, assume that GlabalSystems can avaid $108,000 of fued costs a year by outsourcing production. In addifon, because sales are increasing, GlobalSystems needs 78,000 switches a year mather than 73,000 switches. What should the compary do now? 3. Given the last scenario, what is the most GiobalGystems would be wiling to pay to outsource the swibches? Roquirement 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 "or for ary zero amounts. found amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) Decision: (5) because the variable cost per unt to make the switch is (6) than the variable cost per unit to buy the switch. Requirement 2. Now, assume that GlobalSystems can avoid $108,000 of fued costs a year by outsourcing production. In addition, because sales are increasing. GiobalSystems needs 78,000 switches a year rather than 73,000 switches. What should the company do now? Complete an outsourcing deciaion analyais assuming fued costs can be avaided by outsourcing production and the number of units needed have increased. Decision: (11) because the total releunant costs to make the switches are (12) than the total relevant costs to buy the switches. Using the basio formula you determined above, solve for the outsourcing cost at which GlobalSystems would be indifferent between outsourcing and making the switches. (Enter your per unit calculation to the nearest cent.) Globalsystems would be indifferent between outsourding and making the switches if the outsourding cost was per switch. Therefore, Systems will only be willing to outsource it the outsourding cost is per switch. 2: Requirements 1. Given the same cost structure, should GlobalSystems make or buy the switch? Show your analysis. 2. Now, assume that GlabalSystems can avaid $108,000 of fued costs a year by outsourcing production. In addifon, because sales are increasing, GlobalSystems needs 78,000 switches a year mather than 73,000 switches. What should the compary do now? 3. Given the last scenario, what is the most GiobalGystems would be wiling to pay to outsource the swibches
