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Global Systems 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: (Click the icon to view the manufacturing costs.) Another company has offered to sell GlobalSystems the switch for $9.50 per unit. If GlobalSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company propared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. B (Click the icon to view the outsourcing decision analysis.) GlobalSystems needs 81,000 opical switches next year (assume same relevant range). By outsourcing them, GlobalSystems can use its idle facilities to manufacture another product that will contribute $150,000 to operating income, but none of the fixed costs will be avoidable. Should GlobalSystems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "o for any zero amounts.) GlobalSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches Data Table Direct materials Direct labor 528,000 66,000 198,000 363,000 Variable MOH Fixed MOH $ 1,155,000 Total manufacturing cost for 66,000 units Print Done Data Table GlobalSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Direct materials 0.00 $ Direct labor 0.00 8.00 $ 1.00 3.00 0.00 Variable overhead 0.00 9.50 8.00 1.00 3.00 (9.50) 2.50 Purchase price from outsider $ 12.00 $ 9.50 $ Variable cost per unit Print Done

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