WorldSystems manufactures an optical switch that it uses in its final product. World Systems does not yet know how many switches it will need this year, WorldSystems incurred the following manufacturing costs when it produced however, another company has offered to sell WorldSystems the switch for 73,000 units last year: $14.00 per unit. If World Systems buys the switch from the outside supplier, the (Click the icon to view the manufacturing costs.) manufacturing facilities that will be idle cannot be used for any other purpose, yet none f the fixed costs are avoidable. Read the requirements. Requirement 1. Given the same cost structure, should WorldSystems make or buy the switch? Show your analysis. Complete an incremental analysis to show whether WorldSystems 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.) World Systems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Direct materials Direct labor Variable overhead Purchase price from outsider Total variable cost per unit none of the fixed costs are avoidable. 0 X struct Data Table how whe amounts. Roun Wor B $ alysi: 1 Direct materials 2 Direct labor 3 Variable MOH 4 Fixed MOH 5 Total manufacturing cost for 73,000 units 657,000 109,500 146,000 438,000 1,350,500 $ Print Done ne cos X Requirements Is. Round sis to these ntal Al 1. Given the same cost structure, should World Systems make or buy the switch? Show your analysis. 2. Now, assume that WorldSystems can avoid $106,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, World Systems needs 78,000 switches a year rather than 73,000 switches. What should the company do now? 3. Given the last scenario, what is the most WorldSystems would be willing to pay to outsource the switches? Print Done er fialda