Very good. I suggest that before you do any serious wiring on this, that you test the trolley on the switch. I'm slightly concerned that the trolley being light weight, and the switch being a little rough, it is possible it could cause the trolley to bounce and even derail. If the trolley passes this test, then it's safe to really get into this project.
I'm not sure that Lionel ever really intended for this unit or its little brother the gang car to go through switches. All of their track designs, just used straights, and maybe a couple curves between bumpers. This level of creativity seems to be a little beyond their vision.