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 $29,800 Direct labor $29,940 Variable overhead Fixed overhead $45,400 $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 (a) Your answer is partially correct 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 3.-45 or parentheses eg. (45)) Direct materials Make Buy 29800 29940 Direct labor Variable manufacturing costs 45400 Net income Increase (Decrease) Your answer is partially correct. 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 ex-45 or parentheses eg. (45).) Direct materials Make Buy 20600 Direct labor 29940 Variable manufacturing costs AS400 Fixed manufacturing costs 26400 Purchase price Total cost 181540 Net Income Increase (Decrease) 200 45400 13300 30100 0 171524 17104 221241 47294 Blossom Company will incur $ 47204 of additional costs if it by the switches (b) 28/8 Would your answer be different if the released productive capacity will generate additional income of $51.384? (Enter negative amounts using either a negative sign preceding the number es. -45 or parentheses e.g. (45).) Total Cost Opportunity cost Total cost Maker $ Buy Net Income Increase (Decrease) $ the answer is The analysis shows that net income will be by $ eTextbook and Media Save for Later Attempts: 0 of 1 used at A