Blossom Company must decide whether to make or buy some of its components. The costs of producing 65,700 switches for its generators are as follows. Direct materials $31,000 Variable overhead $45,900 Direct labor $34,229 Fixed overhead $84,000 Instead of making the switches at an average cost of $2.97 ($195,129 +65,700), the company has an opportunity to buy the switches at $2.71 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 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).) Direct materials Direct labor Variable overhead Fixed overhead Purchase price Total cost LA Make 31000 34229 45900 LA Buy +A Net Income Increase (Decrease) 31000 34229 45900 84000 63000 21000 195129 178047 -178047 241047 Blossom Company will incur $ 45918 of additional costs if it buys the switches. -45918