Blossom Company must decide whether to make or buy some of its components. The costs of...

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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 Variable overhead $45,400 Direct labor $29,940 Fixed overhead $76,400 ked manufacturing costs rchase price 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 Correct Answer Your answer is 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 e.g. -45 or parentheses e.g. (45).) (b) ct materials t labor A Make 29800 i $ 29940 1 ble manufacturing costs 45400 i I manufacturing costs 76400 hase price cost Buy 57300 171524 i 1 Net Income Increase (Decrease) 29800 tal cost SA 76400 i 57300 i 1910 i 171524 i 181540 i $ 228824 i to Wilma Company will incur $ 47284 of additional costs if it buys the switches. eTextbook and Media Solution -17152 -4728 Attempts: 1 of 1 used 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 e.g. -45 or parentheses e.g. (45).) 29940 Total Cost 45400 Opportunity cost 19100 Total cost -171524 $ 181540 $ 228824 $ -47284 LA SA the answer is Make SA SA Buy tA Net Income Increase (Decrease) The analysis shows that net income will be by $ SUPPORT E 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 Variable overhead $45,400 Direct labor $29,940 Fixed overhead $76,400 ked manufacturing costs rchase price 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 Correct Answer Your answer is 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 e.g. -45 or parentheses e.g. (45).) (b) ct materials t labor A Make 29800 i $ 29940 1 ble manufacturing costs 45400 i I manufacturing costs 76400 hase price cost Buy 57300 171524 i 1 Net Income Increase (Decrease) 29800 tal cost SA 76400 i 57300 i 1910 i 171524 i 181540 i $ 228824 i to Wilma Company will incur $ 47284 of additional costs if it buys the switches. eTextbook and Media Solution -17152 -4728 Attempts: 1 of 1 used 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 e.g. -45 or parentheses e.g. (45).) 29940 Total Cost 45400 Opportunity cost 19100 Total cost -171524 $ 181540 $ 228824 $ -47284 LA SA the answer is Make SA SA Buy tA Net Income Increase (Decrease) The analysis shows that net income will be by $ SUPPORT E