Ayayal Company must decide whether to make or buy some of its components. The costs of producing 62,600 switches for its generators are as follows Direct materials $29,800 Variable overhead $45,400 Direct labor $29,940 Fixed overhead $76,400 Instead of making the switches at an average cost of $2.90 ($181,540 +62,600), the company has an opportunity to buy the switches at $2.74 per unit. If the company purchases the switches, all the variable costs and one fourth of the fixed costs will be eliminated. Prepare an incremental analysis showing whether the company should make or buy the switches. (If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.: (45).) Net Income Make Buy Increase (Decrease) Direct materials $ Direct labor Variable manufacturing costs Fixed manufacturing costs Purchase price Total cost Ayayal Company will incur $ : of additional costs if it the switches Do It Review 16-1 Bramble Company is considering a long-term investment project called ZIP ZIP will require an investment of $123,070. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,300, and annual cash outflows would increase by $39,600. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years