19 Sandhill Company must decide whether to make or buy some of its components. The costs of producing 64,800 switches for its generators are as follows. Direct materials Direct labor C (a) $30,700 Direct materials $34,552 Instead of making the switches at an average cost of $2.99 ($193,752 64,800), the company has an opportunity to buy the switches at $2.75 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. OCT Variable overhead Fixed overhead Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) $44,900 $83,600 $ Make Buy Net Income Increase (Decrease) SU

Sandhill Company must decide whether to make or buy some of its components. The costs of producing 64,800 switches for its generators are as follows. Instead of making the switches at an average cost of $2.99($193.75264,800), the company has an opportunity to buy the switches at $2.75 per unit. If the company purchases the switches, all the variable costs and one-fourth of the foxed costs will be eliminated. (a) Prepare an incremental analysis showing whether the company should make or buy the switches. (Enter negotive omounts using either a negative sign preceding the number es. 45 or parentheseses. (45)