Blossom 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 Direct labor (a) Direct materials Direct labor $29,800 $29,940 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. Variable manufacturing costs Purchase price 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).) Fixed manufacturing costs Total cost Variable overhead Fixed overhead $ $45,400 $ $76,400 Make $ $ Buy $ $ Net Income Increase (Decrease)

Blossom 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. 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 fxed costs will be eliminated (a) Prepare an incremental analysis showing whether the compary should make or buy the switches. (Enter negatlve amounts using either a negative sign preceding the number e.s - 45 ar parentheses es. (45))